Premiumization, beauty sales aid Shoppers Stop’s turnaround
The K Raheja Corp. “For years I have heard people say that department stores do not have the right format, but we had a very clear strategy to drive premiumization and create differentiation around experience,” said Kavindra Mishra, managing director and chief executive officer (CEO) of the backed multi-brand store chain. Mint Open Friday.
“We’ve had a 6% increase in similar customer footfall in our stores, and because we’re premiumising, we’re able to create space in consumers’ minds. Many brands are only available through Shoppers. This means the percentage of exclusive lines for Shoppers within a given brand has increased by 300-400 basis points. These are the building blocks we’re working on. They’re starting to add value,” he said.
The 111-store departmental chain reported a 1% drop in visitors in the same period last year.
Shoppers Stop also operates 78 stores of value-focused fashion brand Intune, as well as 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.
Sales increased by 10 percent on an annual basis ₹1,175 crore, the contribution of bonus rose to 69% in the quarter. private brands, ₹161 crore, contributing 13% to overall sales and 17% to the apparel business.
EBITDA (earnings before interest, taxes, depreciation and amortization) increased by 11% ₹173 crore. Average selling price (ASP) increased by 6%, average transaction value (ATV) increased by 8% and items per transaction (IPT) increased by 2%.
Core business revenue from division, beauty products, home concept stores and SS.com operations increased 7% ₹1,346 crore during the quarter. Beauty sales increased 22% annually ₹331 crore and Intune registers 170% YoY increase in sales ₹70 crore.
The multi-brand retailer opened three beauty stores during the quarter.
Analysts at Antique Stock Broking Ltd. said the results were overall ahead of estimates.
“Revenue increased, supported by premiumization and brand investments. Margin was maintained due to cost rationalization, but offset by higher brand investments during the quarter. After several weak quarters for Intune, management highlighted sequential improvement with comparable growth of 1% in 2Q,” they said in an Oct. 20 note.
store renovation
The retailer is investing in improving the in-store experience with high street cafes, playgrounds and children’s play areas to fend off competition and attract consumers to its stores.
Department stores selling a wide range of products and brands have faced an onslaught from single-brand retailers such as global fast fashion brands Zara, H&M and Uniqlo.
Competition from value formats has also intensified over the past few years; In both large and small cities, more retailers are targeting middle-income customers. For example, local value format Zudio, part of Tata-backed Trent Ltd, is also expanding 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 valuable fashion format from Style Up to OWND! appealing to young and polite shoppers. It plans to open 100 stores in 2025-26.
In the segment, Shoppers Stop’s Intune is selling at a lower level. ₹999 price points with average selling price ₹Commenting on the competition, Mishra said that 400-450 is focused on young families and not Gen Z consumers.
The company recently renovated these stores with brighter facades, improved lighting and weekly replenishment of products. “It’s still a very young brand – about 18 months old – so it will take time to build. But Intune is a growing business that we will continue to invest in, while Shoppers Stop remains the cash-generating mothership for expansion,” the CEO said.
The retailer plans to open 15 more Intune stores in the second half of 2025-26. Of course, it missed the earlier guidance of 7-8 Intune stores in the September quarter, and only three new stores opened.
On a positive note, management expects continued double-digit growth, led by a stronger festive and wedding season, according to analysts at Antique.
Shoppers Stop is also strengthening its premium portfolio by partnering with global brands, 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 bags and will soon launch Boss and G-Star,” the CEO said. “As we speak, we also talk to other players in the fashion and accessories space. Everything will be top-notch.”
