In a recent financial disclosure, Shoppers Stop Ltd., a leading department store featuring premier fashion and beauty brands, unveiled its robust performance for the quarter ending December 31, 2023. The company reported a noteworthy YoY growth of 7%, with total sales reaching Rs. 1,207 Cr, it announced in a release on Thursday.
The beauty segment emerged as a standout performer, showcasing an impressive growth of 10%. Fragrance led the way with a remarkable 41% increase, while Makeup contributed with a steady 6%. The overall mix for the Beauty category reached 18%, reflecting the company’s focus on meeting evolving consumer preferences.
Private brands played a significant role in the overall mix, contributing 13%, with apparel accounting for 19%. Women’s Indian wear, in particular, exhibited a commendable growth of 7%, indicating a positive response from the customer base.
The premiumization trend remained evident, as the Average Transaction Value (ATV) recorded a notable 6% increase. Shoppers Stop added 13 new stores during the quarter, including four Department stores, four Beauty stores, four Intune stores, and one Airport store. The capital expenditure investments for the quarter amounted to Rs. 51 Cr, bringing the Year-To-Date (YTD) investment to Rs. 162 Cr.
Maintaining its commitment to financial prudence, Shoppers Stop remains debt-free with a Net Cash surplus of Rs. 40 Cr.
Commenting on the Q3FY24 results, Kavindra Mishra, Executive Director and CEO of Shoppers Stop Ltd, said, “Our Company has delivered admirable financial results with a Sales growth of 7% despite muted consumer demand. And during the festive period, the sales grew by 9% (LTL +5%). Average Transaction value grew by 6% driven by premiumization and Items per Ticket grew by +5%.”
“Some of the outliers for Q3 are, our external Brands both apparel and non-apparel have grown above average, with better yields on our KPI’s. Our Home Stop has turned around and had an impressive growth of 10%, with a sale of Rs. 42 Crs. We reported a GAAP EBITDA of Rs.219 Crs vs Rs.240 Crs in FY23. Our EBITDA has been lower due to a one-time Income of Rs.17 Crs as other Income in FY23 and we have made provision for obsolescence of circa Rs.9 Crs during the quarter.” Mishra added.
Strategically, Shoppers Stop focused on premium brands and differentiated experiences across various categories. The management remains optimistic about the increased spending observed in these areas, indicating a positive response from their customer base.
Key strategic pillars, including the First Citizen loyalty program, Private Brands, Beauty, Intune, and Beauty Distribution, played crucial roles in driving sales and contributing to the overall growth story. The company’s store expansion plan for FY24 remained on course, with the addition of 13 stores in the latest quarter.
Founded in 1991 by the K. Raheja Corp., Shoppers Stop Ltd. continues to be a prominent player in the retail landscape, with a diversified omnichannel offering spanning over 105 department stores, 7 premium home concept stores, 88 Specialty Beauty stores, 10 Intune stores, and 23 Airport doors. The company’s commitment to customer satisfaction is further exemplified by its loyalty program, ‘First Citizen,’ and innovative shopping assistance services like ‘Personal Shopper.’
