Premiumization, beauty sales help Shoppers Stop's turnaround

Copyright © HT Digital Streams Limited All rights reserved. Shoppers Stop operates 10 home concept stores, a major beauty business comprising 84 beauty stores and 78 stores for its value-focused fashion brand Intune. Summary Shoppers Stop’s sales grow 10% y-o-y to ₹1,175 crore, with premiumisation’s contribution rising to 69% during the September quarter. NEW DELHI: Premiumisation, exclusive brand tie-ups and an enhanced in-store experience helped Shoppers Stop Ltd increase footfall in the three months ended September 30 after several weak quarters, even as it invests in its value and beauty formats with a capex of ₹160-200 crore for 2025-26. “For years I have heard people say that department stores are not the in format, but we had a very clear strategy to drive premiumization and create a differentiation around experience,” Kavindra Mishra, managing director and chief executive officer (CEO) of The K Raheja Corp.-backed multi-brand store chain, said in an interview with Mint on Friday. “We had a 6% like-for-like customer penetration increase in our stores, and because we’re doing premiumization, we’re able to create a space in consumers’ minds. Many brands are only available through Shoppers. This means that within a given brand, the percentage of exclusive lines for Shopper has improved by 300-400 basis points. These are the building blocks we’ve started working on,” he said. he said. The 111 department store chain reported a 1% drop in footfall in the past year. Shoppers Stop also runs 10 home concept stores, a major beauty business comprising 84 beauty stores for brands such as Estée Lauder, MAC, Bobbi Brown, Clinique, Jo Malone London, Nars, Armani Beauty, apart from 78 stores for its value-focused fashion brand Intune. Its sales grew 10% year-on-year to ₹1,175 crore, with premiumisation’s contribution rising to 69% during the quarter. Its private brands, at ₹161 crore, contributed 13% to overall sales and 17% to the apparel business. Its Ebitda (earnings before interest, tax, depreciation and amortization) rose 11% to ₹173 crore. Average selling price (ASP) increased 6%, average transaction value (ATV) 8%, and items per transaction (IPT) 2%. Core business revenue—comprising the department, beauty, home concept stores and SS.com operations—increased 7% to ₹1,346 crore during the quarter. Beauty sales rose 22% year-on-year to ₹331 crore, and Intune recorded a 170% year-on-year jump in sales to ₹70 crore. The multi-brand retailer opened three beauty stores during the quarter. The results were generally higher than estimates, analysts at Antique Stock Broking Ltd said. “Revenue grew supported by premiumization and brand investments. Margin was maintained due to cost rationalization; however, this was offset by higher brand investments during the quarter. After a few weak quarters for Intune, management emphasized sequential improvement with 1% growth in a like-for-like for 20 years,” note. Store refurbishment The retailer has invested in improving the in-store experience with cafes, games zones and children’s play areas at high street locations to fend off competition and attract consumers to its stores. Department stores, which sell a diverse range of goods and brands, have faced the onslaught of single-brand retailers such as global fast-fashion brands Zara, H&M and Uniqlo. Competition from value formats has also intensified in recent years, with more retailers targeting middle-income shoppers in both large and small cities. For example, homegrown value format Zudio, part of Tata-backed Trent Ltd, has also expanded at a steady pace. As of March 2025, Zudio had 765 stores in 235 cities. Recently, Aditya Birla Fashion and Retail Ltd announced plans to rebrand its value fashion format, Style Up to OWND! to appeal to younger, softer buyers. It plans to open 100 stores in 2025-26. In the segment, Shoppers Stop’s sells Intune at a price point below ₹ 999 with an average selling price of ₹ 400-450, focusing on young families, not Gen Z buyers, Mishra said commenting on the competition. The company recently refreshed these stores on a weekly basis with brighter facades, improved lighting and refreshed merchandise. “It’s still a very young brand—about 18 months old—so it will take time to build. But Intune is a growth business we’ll continue to invest in, while Shoppers Stop remains the mothership that generates cash for expansion,” the CEO said. The retailer plans to open an additional 15 Intune stores in the second half of 2025-26. It certainly missed the earlier guidance of 7-8 Intune stores in the September quarter, with only three new stores opening. On a positive note, management expects double-digit growth to continue, led by a stronger festive and wedding season, according to analysts at Antique. Shoppers Stop also strengthens its premium portfolio by partnering with global labels, which typically partner with a retailer for a shop-in-shop format, rather than stand-alone stores. “We have launched New Balance, Asics, Armani Exchange and Guess handbags, and will soon launch Boss and G-Star,” the CEO said. “As we speak, we are talking to other players in the fashion and accessories. It will all be premium.” Get all the corporate news and updates on Live Mint. Download the Mint News app to get daily market updates and live business news. more topics #Shoppers Stop Read Next Story