Shoppers Stop reported a 41 per cent year-on-year decline in its profit after tax (PAT) at Rs 13 crore for the quarter ended 30 June 2023, for the fiscal year 2023-24.
However, its sales grew by 4 per cent at Rs 1, 241 crore for the quarter gone by, compared to the last year at Rs 1, 190 crore in the same quarter. Beauty remained the fastest growing segment recording sales of Rs 216 crore with 13 per cent YoY growth.
According to the company, brand premiumisation across categories resulted in strong average transaction value growth of 8 per cent.
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, he said.
Recently, the company launched “Intune” a “Fashion For All” format, one of the strategic initiatives to cater to young families. It launched 3 stores, 2 at Hyderabad and 1 at Dombivli (Mumbai) and another 3 stores are under fit out.
