[RETAIL MANAGEMENT] CROSSWORD

PROJECT CONTENTS

 Abstract…………………………………………………………
………………………….3
 Methodology……………………………………………………
……………………….4
 Company Overview……………………………………………
……………………..5
 Retail Institution………………………………………………
……………………….6
 Crossword Customers………………………………………
……………………….7
 Store location and Site Evaluation………………………
…………………….9
 Crossword - Organization and Management……………
………………12
 Classification from Retailer’s point of view……………
………………..14
 Positioning of the Retail store………………………………
…………………16
✔ Location
✔ Merchandise Assortment Planning
✔ Merchandise Pricing at Crossword
✔ Communication via promotions
 Competitive Objectives & Its Competitors………………
………………22

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 What Lies Ahead & Challenges……………………………

………………….23
 References………………………………………………………
……………………..24

ABSTRACT
“Making Crossword Was A Dream, A Belief, and A Passion.
The Dream Was To Make A World-class Book Shop, The
Belief Was That Books Make A Difference, And The
Passion Was In The Magic Of Books And For Delighting
Customers.” Mr.R.Sriram (CEO Crossword)

Retailing in India is a big industry, bigger than the IT industry. It

has a turnover of 205 billion every year in sales. And it is
supposed to grow 300% in the next 5 years. The only problem in
India is that most of it is unorganized.
Crossword's secret of success is not to just offer a wide range of
products, but to create an ambience that would get the customer
to spend more time, and money, at the store. They were one of

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the first bookstores to have seating arrangements where

customers could relax and read. They also added services like
dial-a-book, where customers can order a book on the phone and
they will deliver it at no extra cost. Free home delivery was also
firstly introduced by them. Most of their marketing money is
spent on direct marketing to their book rewards members, and
those members adding value and experience in their store.
The main highlights of the report are:
 Coverage of Retail outlets of Crossword in Pune.
 Site evaluation done by us.
 Organizational structure.
 Category of products & its product line.
 Positioning strategy.

 Main competitors.

“Not many people have the will to turn their passion into
their profession and that is what we learnt from
Crossword”

METHODOLOGY

This report is based on primary data as well as secondary

data.
1)Primary data
– Personally visited few of the stores in pune and
gathered all the relevant information.

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– Interaction with the floor manager in charge of the

store.
2)Secondary data
– Company’s website.
– Internet.
– Business Magazines.
– Newsletters.

Kalyani nagar(Gold Adlabs)-Pune

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Crossword was founded in 1992 by Mr R. Sriram and Ms K. Anita

along with a young team from India Book House Limited and the
first Crossword store opened on 15th October 1992 at Mahalaxmi,
Mumbai and currently the chain has 50 stores across 12 cities in
India. Originally promoted by the India Book House, in year 2000
K Raheja and ICICI Ventures had purchased stake from IBH in
Crossword. Later Shopper’ Stop Ltd had bought stake of ICICI
Ventures in Crossword. Currently, Crossword Bookstores Ltd. is a
wholly owned subsidiary Company of Shopper’s Stop Ltd – India’s
leading department store chain. The Holding Company inter-alia
also acts as a Master Franchisee of the Company.
Why the name Crossword--While we do crossword
puzzles for fun, they are also a learning experience. The
name Crossword was therefore chosen to reflect the dual
fun and learning experience of a visit to Crossword.
The Crossword Chain--Crossword, with fifty stores, across
Mumbai, Bangalore, Ahmedabad, New Delhi, Ghaziabad,
Pune, Nagpur, Vadodara, Kolkata, Chennai, Jaipur,
Vishakhapatnam and Hyderabad today is India's fastest
growing chain of bookstores.
Product and Services--Crossword addresses a wider
audience than existing stores with its unique product mix.
There is of course, the widest range of books for the young
and old alike, along with magazines, CD-ROMs, music,
stationery and toys. Services like Dial-a-book, Fax-a-book and
Email-a-book enable customers to shop from their homes; and
when they come to the store, the unobtrusively helpful staffs
assist them in finding the right book, the right CD or the right
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gift for the right occasion. Facilities like the Crossword Gift
Vouchers, the friendly 'Return, Exchange & Refunds' policy,
the Cafes within the stores and the unique store experience
make it easy and enjoyable for customers to shop at
Crossword. Over 1,00,000 loyal customers are rewarded
through the Crossword Book Rewards Program with
points, discounts, promotional offers and more. 'eWords', a
monthly e-newsletter with reviews of new books, news about
in store events and bestseller lists, is currently mailed to
these members.

“A place and space for people who seek information,

knowledge or just the pleasure of reading”
Vi
sion of Crossword

RETAIL INSTITUTION
Wheel of Retailing
Crossword lies in the Trading up Phase in the wheel of retailing
with expected, essential and exotic services and extended
product offerings apart from books like DVDs, Toys, and
Stationery etc.
Classification
Crossword is a Chain Store (Ownership, Store Based Retailer),
having a centralized buying and merchandising system and
selling similar lines of merchandise.
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Crossword Franchise
The Holding Company inter-alia acts as a Master Franchisee of the
Company.
Crossword’s franchisees, Mr. Gaurav Shah and Mrs. Supriya Shah,
were appointed in 1995 and the first franchise store opened on
7th October 1995 in Ahmedabad spread over an area of 4500 sq.
ft. With their passion and commitment it has grown over the
years and is currently spread over 15,000 sq. ft. in the same
location. Mr. Gaurav and Mrs. Supriya have also opened three
Crossword Corners in Ahmedabad and operate a total of four
stores currently.

CROSSWORD CUSTOMERS
Crossword’s positioning:-
Crossword, positioned as a lifestyle bookstore, has been able to
change this by designing large, spacious, well laid out stores, with
bright cheerful interiors that encourage people to stay and
browse. Simple innovations such as methodical classifications,
clear signage, a dedicated enquiry /orders desk, electronic POS
and inventory control systems and attractive displays make
looking for books a much more pleasurable experience. A
welcoming café, reading tables and chairs and toilets within the
store, (some of the innovations pioneered by Crossword in India)
help to ensure that customers are able to browse in comfort for
several hours without having to leave.

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Crossword as a center for the community:-

Crossword aims to be a point of cultural and social interaction
where authors and poets hold court, where children are regaled,
where people gravitate to be informed, to be entertained, even
enlightened.
Among the numerous writers who have visited the store are Sir V
S Naipaul, Arundhati Roy, Vikram Chandra, Vikram Seth, Kiran
Nagarkar, Andrew Motion, Michele Roberts, Shashi Tharoor,
Shobhaa De, Charles Handy, Ricardo Semler and Jack Canfield.
Promotional events include pictionary contests, quizzes, slide
shows and the annual affair with Santa and his elves. Ian
Anderson of Jethro Tull came for a signing, so did Macho Man
Randy Savage, the WWF champion.
Range of Merchandise:-
Crossword addresses a wider audience than existing stores with
its unique product mix. There is of course, the widest range of
books for the young and old alike, along with magazines, CD-
ROMs, music, stationery and toys. With its large children's section
and its focus on making the store a friendly, safe, fun-filled place,
Crossword attracts many families who normally don't think of
visiting bookstores.

Convenience of Shopping:-

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Services like Dial-a-book, Fax-a-book

and Email-a-book enable customers to
shop from their homes; and when they
come to the store, the unobtrusively
helpful staffs assist them in finding the
right book, the right CD or the right gift
for the right occasion. Facilities like the
Crossword Gift Vouchers, the friendly
'Return, Exchange & Refunds' policy,
the Cafes within the stores and the
unique store experience make it easy
and enjoyable for customers to shop at Crossword.
Time to Travel:-
All the Crossword Bookstores are located in convenient locations
like multiplexes; shopping malls etc. and are easily accessible to
customers.
Socio-economic Background and Culture:-
Crossword aims to be a point of cultural and social interaction
where authors and poets hold court, where children are regale,
where people gravitate to be informed, to be entertained, even
enlightened. There are regular readings, discussions and debates
on varied subjects from literature and art to child sexual abuse,
war and peace, business and management, travel, parenting and
health.

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STORE LOCATION & SITE EVALUATION

1. Head office: Railway station 2.Senapati Bapat Road

3.Shivaji nagar

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4. E-Square Mall-Pune 5. Kothrud-Pune 6.

Aundh-Pune

7. Chinchwad-Pune 8. Kalyani nagar-Pune 9.

Hinjewadi-Pune

10. Pune Sohlapur Road 11. ISHANYA MALL-Pune

Crossword Bookstores in Pune

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1. Head office: Sohrab Hall, 1st Floor, Junction of RBM-

Cannaught Road, (Behind Pune Railway Station), Pune -
411001.
2. ICC Trade Towers, Senapati Bapat Road, Pune - 411 016
3. At Shoppers' Stop, Godrej Eternia, B Wing, 1st floor, Bombay-
Pune Rd, Shivaji Nagar, Pune – 411016
4. E - Square University Road, Ganesh Khind, Pune - 411007.
5. Survey no 20/1/2, City pride multiplex, Near Swapnashil
society, Kothrud, Pune – 411029.
6. Supreme Centre, Ground Floor, ITI Road, Next to Bonsai,
Aundh, Pune - 411001.
7. Premier Plaza, next to Mc Donald, Chinchwad – Pune- 411016.
8. Gold Adlabs Multiplex, Kalyani Nagar, Pune – 411014.
9. S.No 29, 1/2/3, Plot No1 HPCL Petrol Pump, Next to Madhuban
Hotel, Hinjewadi, Pune – 4110027.
10. Krome Mall, 1001/1002, 1st Floor, Krome mall, Pune Sholapur
Road, Pune – 411013.
11. ISHANYA, Nr Golf course, off Airport Road, Pune - 411006

EVALUATION DONE BY US AT MAJOR CENTERS

1. Head office-Railway station

2. Senapati Bapat Road
3. E-Square Mall
4. Chinchwad
5. Aundh
6. Kalyani nagar

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Comparison of the Crossword’s visited by us:

Location Target Customer

Head office: Sohrab Hall, 1st Students, Families and

Floor, Junction of RBM- Foreigners visiting Pune from
Cannaught Road, (Behind outside cities, since station is
Pune Railway Station), Pune - nearby
411001.
ICC Trade Towers, Senapati Company Employees of Trade
Bapat Road, Pune - 411 016 Tower, Students (Maximum),
Families.
E - Square University Road, Multiplex Crowd.
Ganesh Khind, Pune -
411007.
Premier Plaza, next to Mc Students, Families & McDonald
Donald, Chinchwad - Pune Crowd.
411016.
Gold Adlabs Multiplex, Kalyani
Students, Families and
Nagar, Pune – 411014. Foreigners staying in
Koregaon Park, Kalyani Nagar
and nearby area
Supreme Centre, Ground IT professionals, Families &
Floor, ITI Road, Next to Management students.
Bonsai, Aundh, Pune -
411001.

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CROSSWORD - ORGANIZATION AND

MANAGEMENT

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Group Corporate Structure

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Source: Annual Reports

Organization Structure
Crossword Bookstores Ltd. is a wholly owned subsidiary Company
of Shopper's Stop Ltd - India's leading department store chain.
The Holding Company inter-alia also acts as a Master Franchisee
of the Company.
Crossword Bookstore has vertical organizational structure
where management follows top-down approach. They have
centralized controlling system. For designing their
organizational structure based on responsibilities and tasks,
Crossword Book Store used Geographical Approach. In this
approach, work is allocated on the basis of the geographical
location of the organization.

CLASSIFICATION FROM RETAILERS POINT

OF VIEW
Crossword is a store based retail outlet, in that also it falls in to
ownership store and if we go for further classification it can stand
as a Chain store.
Crossword has many retail outlets that are commonly owned and
controlled. They have a centralized buying and merchandising
system and similar lines of merchandise.
Defining the market:

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“A group of consumers or organizations that is interested

in particular product, has recourses to purchases the
products, and is permitted by law to acquire these
products.”
We will analyze the concept of market especially for Pune based
Crossword outlets.

Total Population Potential

market

Available
market

Qualified
market

Target
market

Penetrated
market

1. Total population
The total number of people residing in Pune and there are in
total of 11 Crossword outlets in Pune.
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2. Potential Market
The resident of nearby areas like university road, Deccan,
Model Colony, Erandawane, Kothrud, Aundh, Baner, F C
road, J M road, Shivaji nagar, Bhosale nagar and Hinjewadi
area as well as having the potential to pay fall in to potential
market.
3. Available market
Individuals having high disposable income especially from IT
and other growing industries fall in to available market.
4. Qualified available market
The individual who are legally permitted to buy the products
comes in to qualified available market.
5. Target market
Identify the individual in the qualified available market that
the firm wants to serve is called the target market. Target
market for Crossword is basically youth and the old.
6. Penetrated market
From target market the individuals who purchases comes
in to Penetrated
market.

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POSITIONING OF THE RETAIL STORE

Crossword's Positioning
Crossword, positioned as a lifestyle bookstore, has been able to
change this by designing large, spacious, well laid out stores, with
bright cheerful interiors that encourage people to stay and
browse. Simple innovations such as methodical classifications,
clear signage, a dedicated enquiry /orders desk, electronic POS
and inventory control systems and attractive displays make
looking for books a much more pleasurable experience. A
welcoming café, reading tables and chairs and toilets within the
store, (some of the innovations pioneered by Crossword in India)
help to ensure that customers are able to browse in comfort for
several hours without having to leave.
“We were clear that we wanted Crossword to be positioned as a
lifestyle bookstore, a place where everyone in the family would
find something that interests him,” says Mr R Sriram, CEO and
Managing Director, Crossword Bookstores Limited.

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Core Dimensions
Location Merchandise Price Service Communication

Improved Quality &

Customer Satisfaction

Operation Logistics Finance Purchasing Technology Market

Research

Store Functions

Core Dimensions
1. Location
Location strategy for a store is very important. It is location
which determines the customer traffic in a particular mall. In case
of Crossword, it has very successfully opened 11 stores in Pune;
hence attractive position has been done in these areas. These
locations fulfill the objective of targeting various segments from
students to earning individuals and families with kids.

2. Merchandise Assortment Planning

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Category Management
A category is retailer’s fundamental unit of analysis for making
decisions pertaining to merchandising. A category is a distinct,
manageable group of products or services, which are perceived
by customers to be interrelated and/or substitutable. In
crossword, the various categories are- Books, Magazines, Music,
CD-ROMs, Movies, Toys, Stationery.
The category Management is the process of managing all stock
keeping units (SKUs) within a product category. It involves the
simultaneously management of price, shelf-space, merchandise
strategy, promotional efforts and other elements of the retail mix
within the category, based on the firm’s goals, the changing
environment and the consumer behavior.
In crossword, category manager has two main objectives
➢ Satisfying the customer.
➢ Increasing sales in each category.

The responsibilities of the category manager in Crossword book

store are:
➢ Interacting with the vendors.
➢ Merchandise selection.
➢ Merchandise pricing.
➢ Working with the advertising department for developing
various promotion schemes.

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Assortment Plan & Product line in Crossword

An assortment plan depicts what should be carried in a specific
category of merchandise. An assortment plan tends to be
amalgamation planning of the GMROI plan, the inventory
turnover plan, sales forecasting and assortment planning. The
assortment plan provides the merchandise planner with a view of
what the composition of a specific category of merchandise
should be.

The assortment plan of Crossword book store is:

 Books
1. Fiction -- General Fiction, Indian Fiction, Classics,
Contemporary Classic, Crime and Mystery, Science Fiction &
Fantasy, Thrillers, Fables and parables
2. Non Fiction
3. Business and Management
4. Food and Drink
5. India
6. Travel
7. Children
8. New Arrivals
9. Prize Winners
 Magazines
 CD-ROMs – Audio and Video
 Movies – Indian and International

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 Music – Indian and International

 Toys
 Stationery

Crossword obtains books through publisher, manufacturer, or

distributor of books and magazines.
List of publishers –
CATEGORY PUBLISHING HOUSE

ABHINAV PUBLISHINGS
• ART---------------
DREAMLAND PUBLISHERS
• BUSINESS-------- GLOBAL VISION PUBLISHING HOUSE
THE BOOK SYNDICATE
LAXMI PUBLICATION PVT LTD.
• COMPUTER-----
VIKAS PUBLISHING HOUSE PVT LTD.
CAMBRIDGE UNIVERSITY PRESS INDIA PVT LTD.
• EDUCATION-----
FRANK BROTHERS AND CO.
ORIENT PAPERBACKS
• HEALTH---------
SPECTRUM PUBLICATIONS
GYAN BOOKS
• HISTORY--------
SHIBHI PUBLICATIONS
OSIAN’S THE LITERARY AGENCY
• TRAVEL---------
ANANDA PUBLISHERS
GIRI TRADING AGENCY
• MUSIC----------
GYAN BOOKS
NATIONAL BOOK TRUST
• FICTION--------
SNAB PUBLISHERS

List of Manufacturers-

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CATEGORY MANUFACTURER
• STATIONERY-------------------------- NEELGAGAN, ITC
--- TOY KRAFT INDIA
• TOYS----------------------------------- T-SERIES, ULTRA, MOSERBAER
----
• CD/VCD/DVD-------------------------
---

Once crossword decides on a suitable strategy it

determines its optimum brand mix.
3. Pricing Strategies
High-Low Pricing
Crossword follows high-low pricing as they reduce the price of
their products very occasionally. To attract more customers, these
retailers advertise frequently. Coupons
Coupons are documents that entitle the holder to a percentage
price reduction from the actual price of a product or service at
stores like crossword. Crossword also issues these coupons in
leading newspapers to bring in new customers and generate
positive sales in the short run.
Multiple-Unit Pricing
Multiple-unit pricing occurs when the price of each unit in a
multiple-unit package is less than the price of each unit if it were
sold individually. For example, Crossword offers three books as a
bundle for certain price (Rs 1000), which would be less than three
books bought separately (399*3 i.e. Rs 1197). Another example
could be offering three DVDs for Rs 85 where as if one purchases
them separately it would cost much more.
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Odd Pricing
Odd pricing refers to the practice of setting retail prices that end
in an odd number or just under an even rupee value. For example
crossword book store sets prices like Rs. 299, Rs 395, etc.
Through odd pricing, crossword tries to make customers feel that
they are paying less for the products offered by the store.
Pricing plays an important role in retailing and especially at stores
like crossword where in this is one of the important attracting
elements to increase the sales and revenue. Pricing also needs to
be effective as it explains the interrelationship between the
objectives of the retail store and the components of the retail
mix. A pricing strategy should help retailers earn a profit and, at
the same time, benefit the customers. Crossword thus follows
effective pricing strategy which brings in more number of
customers and thereby increasing sales and revenue.

4. Communication via Promotion mix at Crossword

Promotion in the context of a retail store basically means creating
awareness about the retailer’s store, its merchandise and
services it offers and influencing the perceptions, attitude and
behavior of the consumers toward the retailer. Promotion involves
four major activities – advertising, maintaining public relations,
personal selling and sales promotion.
Advertising- print & electronic media are used very extensively.
Advertisements on the latest discounts, Book Launches are given
in leading newspapers. Customers are given the convenience of
placing orders on net.

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Public relations- The customers of the store are offered a

membership based on the points which are calculated on the
basis of purchases made by the customer. The members are
offered Free Home Delivery which is referred to as “Dial a book”
service.
Personal Selling- Once you enter the store, you find sales
personnel who assist customers in making purchases by
providing information to customers about the availability of
books, prices etc. The personnel takes into account the customer
feedback form.
Sales Promotion-to promote its sales crossword launched a
number of events. In 1998 Crossword launched the Crossword
Book Award to recognize & reward the best Indian writing. There
was one cash prize of Rs 300,000 for each category. In 1999, a
new category was added: Indian Language Fiction translation into
English & the cash prize was increased. Later Vodafone
Crossword Book Award was also started. It also started a weekly
reading program for children. Various Book Launches were also
organized by Crossword to promote sales. Further once in every
year usually post Diwali Crossword has its yearly sale. In addition
to this it also gives discounts to Corporates & institutions.
Apart from the above factors, the Store atmosphere of a retail
store is also a paid form of impersonal communication. It involves
all the attributes like architecture, design, displays, color scheme,
lighting, music, fragrance etc.. If we analyze the store
atmosphere of Crossword we can say that it scores pretty high in
this area.

Competitive Objectives & Its Competitors

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A retailer of a book store would pursue various competitive price

objectives like meeting competitor’s prices, preventing an
increase in competitors, or working towards non price
competition. Looking at the competition we compared crossword
book store with oxford book store and analyzed that the prices of
the products at both the stores were within the same range and
there was not any huge difference. However a deeper look at the
pricing strategies shows that Oxford has more competitive
advantage over crossword as the same ‘best-seller’ is offered at a
lower price in Oxford. For Example: ‘Greatness Guide 2’ written
by Robin Sharma is offered at a price of Rs195 at crossword but
at oxford it is issued at 10% discount and is priced at Rs 170.
Another example could be of ‘The Alchemist’ written by Paulo
Coelho which is priced at Rs 470 in crossword but in oxford there
are conditions like if delivery of the product is done within 48
hours the price charged would be Rs 195 and if done within two
weeks the price would be Rs 150.

Main Competitors of Crossword:

From Bangalore – Landmark, Axis Books, Gangaram’s, Blossoms
From Mumbai – Odyssey, Oxford Bookstore
From Madras – Landmark, Moore Market, Oxford Bookstore
From Delhi – First & Second Bookshop, Midland Bookshop
From Pune – Landmark

WHAT LIES AHEAD & CHALLENGES

In the next three years, Crossword plans to open 100 stores,
which would be a mix of franchised and
company-owned stores. Crossword has
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also tied up with Hindustan Petroleum Corporation Ltd to launch

bookstores in HPCL outlets, four of which are already operational
in Mumbai.
RPG retail is also set to enter this sector with its books beyond
outlets. The bookstores will follow the Music World strategy for its
expansion. The first standalone outlet will be opened in Kolkata
before launching a pan- India presence. The outlets are to occupy
spaces between 15,000 – 18,000 square feet & will also include
the concept of a Music World & a café.
The world’s largest bookseller, Barnes & Noble is planning an
India retail chapter too. It is believed that the US-based
bookseller is in talks with the future group for a possible tie-up to
launch its bookstores in India. Apart
from books the US bestseller also sells
music, DVDs, newspapers and
magazines. Barnes & Nobel currently
operates 801 bookstores in the US; & it
sells around 445 million books per year
through its online & offline operations.
It is also the second-largest coffee
house in the US.
Amazon.com which offers online
shopping for books, CDs, DVDs etc. can be biggest threat to
Crossword and other bookstores.
Maybe it’s time for Crossword to retail books online where
consumers have a wider choice of reading reviews before
making purchase decisions.

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REFERENCES

Books / Publications:
• Retail Management by Bajaj, Tuli, Srivastava
• Retail Management by Swapna Pradhan

• Retail Management - ICMR

• India Retail Report 2007

Websites:
• http://www.thehindubusinessline.com/2006/11/29/stories/20
06112901300500.htm
• http://retailindustry.about.com/?once=true&
• http://www.crosswordbookstores.com/Html/AboutCW.htm
• http://www.crosswordbookstores.com/Html/vendors-
homepage.asp
• http://www.crosswordbookstores.com/Html/franchise-
homepage1.asp
• http://www.crosswordbookstores.com/Html/gift%20vouchers-
homepage.asp
• http://crosswordbookstores.com/html/brp-homepage.asp
• http://crosswordbookstores.com/html/BestSellersDetails.asp
• http://crosswordbookstores.com/html/sriram%20reco-
homepage.asp
• http://crosswordbookstores.com/html/events-homepage.htm
• www.oxfordbookstore.com
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• www.amazon.com

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