Reports PBT of Rs.19 Cr in Q1 FY24; PAT at Rs 13 Cr
Brands premiumization across categories resulted into strong Average Transaction Value growth of 8%
Capex investment of Rs 43 Cr
Added 1 HomeStop and 6 Beauty stores
5 Department stores under fit-out
Renovated 3 Department and 1 HomeStop Stores
Shoppers Stop launched “Fashion For All” format under the brand “Intune”, which is 100% private brand. Opened 3 stores-2 at Hyderabad and 1 at Dombivali (Mumbai), 3 stores under fit out
Beauty remained fastest growing segment recording sales of Rs 216 Cr, +13% YoY
Shoppers Stop Ltd. one of India’s leading premier fashion and beauty brands, has declared its results for the quarter ended 30th June 2023, for the fiscal year 2023-24.
Mr. Venu Nair, MD & CEO at Shoppers Stop, commented on the Q1 FY24 results, “Retail Sector is moving towards normalcy, with Beauty & non-apparel categories seeing strong growth. However, Apparel segment is witnessing moderation, and the operating environment remains challenging. In this context we have delivered a resilient and competitive performance. Our business model and its strategic pillars are driving sustainable growth. As a result, our revenue for Q1FY24 has grown by 4% compared with Q1FY23. We continue to revamp our older stores to upgrade their look and feel, offering fashionable brands for all age groups and customers. Our strategy of democratization of beauty for all segments of customers has driven growth. The 3P customer centric strategy about personalization, premiumization and private label has, resulted in Increased Average Transaction Value (ATV) Average Selling Price (ASP) by 8% and 5%.
“On the overall store expansion strategy, Shoppers Stop will open 12 new Department stores in 7 new cities by the end of FY24, apart from 15 Beauty stores. Recently, we launched “Intune” a “Fashion For All” format, again one of the strategic initiatives to cater to the Young Families. We launched 3 stores, 2 at Hyderabad and 1 at Dombivli (Mumbai) and another 3 stores are under fit out.”
“Our customer engagement strategy through various offline and online activations like beauty makeovers, End of Season Sale (EOSS) witnessed a rebound of customers footfalls to our stores resulting in higher traction. For a more personalized experiences through AI, we have introduced ‘Virtual Try On and Skin Analyzer’ at SSBeauty stores for virtual try on make-up experience.”
Performance of strategic pillars in Q1FY24:
First Citizen Loyalty Customers continue to choose us as their preferred brand of choice for their fashion and beauty needs. First Citizen base expanded to 9.2Mn loyal customers and contributed to 80% of offline sales and 42% of online sales. For our premium Black card members, the Average Transaction Value (ATV) was 2X and members spend was 4X of the First Citizen. We received 2X campaign response from our 450+ customer engagement activities with an increased ATV +26%.
Private Brands – Private Brands Sales gave a contribution of 14% to the Sales and 21% on apparel. Indian wear category outperformed with “HAUTE CURRY” grew by 42% and “KASHISH” grew by 14%. Smart Casual wear for men under the brand “FRATINI” grew by 39%.
Beauty – Beauty at Rs.216 Crs, grew by 13% contributing 16.4%. The strong customer engagement with 160K makeovers resulted into higher engagement and conversion. We have launched 23 new brands under the beauty category such as Kilian Paris, Lancôme, Olaplex, Farmacy etc. We introduced “Virtual Try On and Skin Analyzer” at SS Beauty store for virtual try on make-up experience, one of the unique propositions from Shoppers Stop to its customers.
Store Expansion – We launched 1 HomeStop and 6 Beauty Stores in this quarter. We have 5 Department stores under fit-out and schedule to open this quarter. We renovated 3 departmental and 1 Homestop during the quarter. We also launched 3 Intune stores – 2 at Hyderabad and 1 at Dombivali (Mumbai) in this quarter. Our Capex investments were at Rs.43 Crs.
In the near-term, Retail Industry will continue to witness rebalancing of price-volume growth equation and a gradual recovery in consumer demand. In this environment we will continue to provide superior value to our consumers and invest behind our Stores/Brands. We remain focused on driving our long-term strategic priorities including expansion into newer markets and building distinctive capabilities for the future.