Key technology to be used in retail industry: IT transformation is a key factor in achieving high performance for retailers.

Today's retailers need to transform their IT capabilities for a number of reasons. These include: To aggregate and analyze customer data to enhance differentiation. To increase a company's ability to respond to a rapidly changing marketplace through enhanced flexibility and speed. To operate effectively, retailers need to have one system working across stores (sometimes across national borders) to ensure the most effective use of stock and to support optimized business processes. In todays world retail ERP is used by almost every retail store but companies are looking for newer and newer technologies to gain efficiency and competitive edge. Major technologies which are predicted to have a big impact on retail industry are following: Mobile technology: Retail technology investments will focus on allowing customers to find what they are looking for in the way they choose to look for it - in-store, online, or via Smartphone. Mobile marketing will be to find a way to get invited into consumers' social media circles, where consumers have complete control over their interactions. Mobile phones will start to take the place of credit cards at retail stores, and retailers will have to catch up with NFC (Near Field Communication) technology which will become a standard feature of mobile devices, whether consumers want it or not and whether there are any retail stores equipped to interface with it or not. F-commerce (Facebook commerce): It will become popular in the mainstream according to and with Facebook and Google battling for virtual retail turf, retailers will benefit from virtual retail channels without having to pick up the tab to develop. Facebook Deals will overtake Foursquare because Facebook Deals are marketer-driven, whereas the Foursquare model is dependent on proactive consumer participation. Augmented Reality (AR): Major retailers will start using Augmented Reality (AR) more in apps, for a wow factor in marketing, and to geotag products. QR code scanning: Retailers that successfully develop their app technology and integrate QR technology to deliver exclusive content will reinvigorate the relationship between their brands and their consumers.

SWOT Analysis:

Business Model: For the quarter ended December 31, 2011 Hypercity registered retail sales of Rs 214.70 Crore and net loss of Rs 24.51 Crore. With an eye on improving profitability, the company is changing the business model for Hypercity and will focus more on apparel range for better margins apart from changing the trading model for sourcing."In Hypercity we are increasing the overall apparel share and plan to take it to 14 per cent from 7-8 per cent at present as apparel gives more margins, compared to food and grocery," Managing Director Govind Shrikhande said. At present, food and grocery accounts for about 60 per cent of Hypercity's retail items. Company has plans to bring down this percentage drastically. The company is trying to replicate the

'consignment-based model' in Hypercity as is being done with its departmental stores 'Shoppers Stop'. In a consignment-based model, the retailer pays for the goods only after completion of sales and unsold items are returned to the supplier. For Hypercity, it is also looking at concession model that involves sharing space with manufacturers in return for rent or share of revenue.

Partners:

Retail design partner: Hypercity has partnered with JHP of London for in-store design. JHP is a world-class retail design firm with considerable experience in large format stores around the world. Technology partner: Hypercity has deployed best of breed technology infrastructure from JDA, which is the leading global retail technology provider. The JDA suite comprises of the Merchandise Management System (MMS), WinDSS point of sale, E3 Advanced Replenishment, and Intactix space planning modules. The system ensures that customers don't have to wait in long queues for billing, or transaction processing. Thereby, enhancing the overall customer experience at Hypercity. Cleaning & Hygiene Partner: Johnson Diversey is a world class & trusted source of Cleaning and Hygiene products and services. Since food sanitation, store hygiene, safety, etc., are important in any store, Johnson Diversy helps improve the customer shopping experience across key interaction points like food safety, sanitation, etc

Key performance indicator: 1. Gross Revenue of Rs215 Crs in Q3FY12- growthof30%. 2. Like to Like Store growth12%. 3. Gross Margin increased from19.0%in Q3 FY11 to 19.7% Q3 FY12 4. Q3 Store EBIDTA is Rs79 lacs [LYRs (134) lacs]

5. Q3 LTL Store EBIDTA Rs383 lacs [LYRs (83) lacs], EBIDTA +ve for: 5 stores in Q3FY12 [LY: 2stores] [YTDFY12:3stores] 6. Pune and Ahemdabad store launched in Q3, TotalStores: 12 (12.3lacsq.ft). 7. Discovery Club members 3.2lacs [Q3 addition: 60K], contributes 47% of Sales. 8. Sales Growth: HyperCITY stores: 30% 9. LTL Sales Growth: HyperCITY stores: 12% stores > 5 years: 6% stores < 5 years : 15% 10. Sales Per Sq.ft. on chargeable area (Built up sq.ft.): HyperCITY stores: Rs 1,793 (LY Rs 1,844) HyperCITY LTL stores: Rs 2,124 (LY Rs 1,903) Operational Indicators YTD FY12

Reference: 1. http://articles.economictimes.indiatimes.com/2012-02-20/news/31079795_1_hypercity-retail-companiesbusiness-model 2. http://retailindustry.about.com/od/technologyinnovations/a/2011-U-S-Retail-Industry-TechnologyPredictions-Roundup-Top-Retail-Experts-Predict-retailing.htm 3.http://www.accenture.com/us-en/Pages/service-retail-information-technology-summary.aspx