Shoppers Stop says beauty outperformed with +6% growth, plans 15 stores this year
By Retail4Growth Bureau | October 19, 2023
Shoppers Stop, while announcing its results for the second quarter of FY ‘24, says that it spent a capex of Rs 46 crore and that its plans to invest in new stores remain unchanged with 15 Departmental Stores in the pipeline during the year.
Leading retail chain Shoppers Stop Ltd.has declared its results for the quarter ended 30th September 2023. The results shared by the company show that it reported a revenue of Rs 1,025 crore and an EBITDA of Rs 170 crore in the second quarter of FY’24.
Commenting on the Q2FY24 results, Kavindra Mishra, Executive Director and CEO, Shoppers Stop Ltd, said, “Shoppers Stop reported impressive financial results, despite challenging market conditions and shifting of Pujo from Q2 to Q3 this fiscal. We have witnessed a strong pick-up in the Beauty businesses and consistent performance from non-apparels. The premiumization has been sustained across categories resulting into 5% growth in Average Selling Price (ASP) and 1% growth in Items per Ticket (IPT) compared to the corresponding quarter of FY23. Net profits for the quarter were affected due to muted demand in Apparels, partially offset by growth in Non-Apparels.”
Some key highlights
Beauty – Beauty category sales were at Rs.197 crore, remained as the fastest growing category contributing 16% to the overall sales with Fragrance growing by +20%. The company informs that its renewed customer engagement with 240K makeovers activities generated Rs 42 Cr of revenue at 56% conversion ratio
Beauty Distribution – Shopper Stop’s 100% subsidiary Global SS Beauty Brands Limited has already reached breakeven in the last quarter with sales of Rs 23 crore. “We are extremely positive on the beauty distribution business with the launch of NARS and Armani in L’Oréal International Division in October,” says the company statement.
Store Expansion – The Company has been aggressive in its store expansion to increase its national footprint. It launched 4 department stores, 3 beauty stores and 4 Intune stores in this quarter. “Overall, we spent a capex of Rs 46 crore. Our commitment to invest in new stores will remain unchanged and plan to open 15 departmental stores during the year,” says the company.