Indian retailer Shoppers Stop's sales climb 4% in Q1 FY24

The company's EBITDA dropped by 15 per cent to ₹58 crore in Q1 FY24, down from ₹68 crore in Q1 FY23. Similarly, profit before tax (PBT) and profit after tax (PAT) both witnessed significant declines, falling by 41 per cent to ₹19 crore and ₹13 crore respectively, from ₹32 crore and ₹23 crore in Q1 FY23.

In Q1 FY24, Shoppers Stop launched its ‘Fashion for All’ format under the brand Intune, which is entirely a private brand. The company continued its expansion strategy, opening three new stores, two in Hyderabad and one in Dombivli, Mumbai, with three additional stores currently under fit out, the company said in a media release.

The company reported an average transaction value growth of 8 per cent, attributing it to the premiumisation across product categories. Furthermore, the retailer made a capex investment of ₹43 crore, which included the addition of a HomeStop and the renovation of three department stores and one HomeStop.

Shoppers Stop's loyalty programme, First Citizen, saw its customer base expand to 9.2 million, contributing to 80 per cent of offline sales and 42 per cent of online sales. Notably, the average transaction value (ATV) of premium Black card members was twice the average, with member spend four times that of the average First Citizen.

Shoppers Stop’s private brands contributed 14 per cent to the sales and 21 per cent to apparel sales. Standout performers included the Indian wear categories Haute Curry, which grew by 42 per cent, and Kashish, which saw 14 per cent growth. Men's smart casual wear brand Fratini also reported a substantial growth of 39 per cent.

Venu Nair, MD and CEO at Shoppers Stop, said: “Retail Sector is moving towards normalcy. 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.

“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 democratisation of beauty for all segments of customers has driven growth. The 3P customer centric strategy about personalisation, premiumisation, and private label has resulted in increased average transaction value (ATV) and average selling price (ASP) by 8 per cent and 5 per cent.”

Fibre2Fashion News Desk (DP)