TITLE: Relationship of Shoppers Stop with Nifty50
Author: Sanika Shipurkar
Roll no 52 Div -A
Introduction
Shoppers Stop is one of India’s leading retail chains, offering a wide range of products, including apparel, beauty, home decor, and lifestyle accessories. Established in 1991, the company has expanded across multiple cities and operates through both offline and online channels. It is known for housing premium domestic and international brands, catering to a diverse consumer base. caters to fashion-conscious consumers with exclusive collections and loyalty programs like the “First Citizen” membership.
Shoppers Stop houses a mix of national and international brands like Indian brands: Biba, W, AND, UCB, Vero Moda and International brands like Tommy Hilfiger, Levi’s, MAC, Guess, Fossil, Calvin Kle.
Objective: To find out the Beta of Shoppers stop and find its significance.
Literature Review:
1. Growth and Expansion of Shoppers Stop
According to an article by Mehta, R. (2021) published in Retail Business Magazine, Shoppers Stop has strategically expanded its operations to cater to India’s evolving retail landscape. The article highlights the company’s investment in high-end fashion brands and private labels, which has strengthened its market position. It also discusses how the retailer has adapted to shifting consumer trends, particularly the growing demand for luxury and premium products.
2. Digital Transformation in Retail
An article by Patel, V. (2022) in India Retail News discusses how Shoppers Stop has embraced digital transformation to enhance its omnichannel presence. The company has leveraged data analytics, AI-driven recommendations, and an upgraded e-commerce platform to improve customer experience. The article emphasizes how these technological advancements have helped Shoppers Stop compete with online retail giants while maintaining its strong in-store shopping experience.
Data collection:
Shoppers Stop and NIFTY50 data was downloaded for period 1-1-24 to 31-12-24 and data was manipulated to find out the Friday closing prices were calculated of NIFTY50=X and Shoppers Stop=Y, Y was regression on X.
DATA ANAYLSIS
EQUATION: Shoppers Stop=0.547+0.876 Nifty50.
Interpretation:
The regression equation (Y = 0.547 + 0.876X) describes the relationship between the Nifty50 (X) and the Shoppers Stop share price variable (Y) indicating that Shoppers Stop share price is the dependent variable , while Nifty 50 is the independent variable. The positive coefficient of 0.876 suggests that for every unit increase in Nifty50, Shoppers Stop share price is expected to increase by 0.876 units.With 47 observations ((N = 47)), the( R^2)-squared value is 0.1046, indicating that approximately 10.46% of the variation in Shoppers Stop share price can be explained by changes in Nifty50, while the remaining 89.54% is attributable to other factors not included in the model. The f value of model is 5.25.The p-value for the slope is 0.0266, which is less than the conventional threshold of 0.05, indicating that the relationship between Nifty50 and Shoppers Stop shar price is statistically significant at the 5% level. Consequently, this model provides evidence of a significant linear relationship between Nifty50 and Shoppers Stop share price.
Conclusion:
Shoppers Stop’s beta of 0.8765 indicates that it is less volatile than the market and better suited for long-term investment.
References
• Mehta, R. (2021). Expansion Strategies of Shoppers Stop in the Indian Market. Retail Business Magazine, 34(2), 12-15.
• Patel, V. (2022). The Role of Digital Transformation in the Success of Shoppers Stop. India Retail News, 28(4), 22-25.