Shoppers Stop Ltd, one of India’s leading retail companies, has posted rapid business recovery in Q4 FY21. One of the most remarkable metrics was the 188 percent growth in omnichannel sales over the corresponding quarter of FY20.
The company logged 90 percent of FY20 sales in Q4 FY21, the strongest recovery in the last four quarters. It reported Q4 sales at Rs 825 crore, reflecting a 10 percent YoY decline from FY20 and EBITDA at Rs 10.5 crore vs Rs.16.7 crore loss in FY20.
The company said in a statement, “Gross margins improved by 189 bps with an improved mix from private brands. Private Brand grew by 11.5 percent (volume 38 percent) and its share to total business increased by 250 bps.”
Shoppers Stop’s private brands' volume grew by 38 percent, with the beauty category outperforming with the start of make-up from mid-January. Operating efficiencies also improved with costs being lowered by Rs 43 cr in the quarter.
Venu Nair, MD, and CEO, Shoppers Stop, stated, “Business recovery until Mid-March had been very encouraging. However, with the surge in Covid-19 cases, we witnessed a drop in footfall resulting in a drop in revenue. Despite the Covid-19 impact, we had strong performances in all our strategic pillars. Our omnichannel sales grew by 188 percent (3X growth) and private brands’ volume grew by 38.”
“Specifically, on omnichannel, our dream run continues. During the quarter, we did the first phase of the upgrade of the home page and continued to add new brands. We also improved our fulfillment parameters by changing the allocation logic which improved the Turnaround Time. We are investing heavily in this channel and have begun the second phase of the upgrade of our app, with a complete redesign of UI/ UX, analytics, and personalization,” he added.
The company looks to add 20+ stores across large and small formats in FY22, noting that store expansion was deferred due to the Covid-19 impact in FY21.
Shoppers Stop. operates 84 department stores in 44 cities, as well as premium home concept stores (11 stores), 127 specialty beauty stores of M.A.C, Estée Lauder, Bobbi Brown, Clinique, Smash box, Jo Malone and Arcelia, and 23 airport doors, occupying an area of 4.5 million sq. ft.