Shoppers Stop – Performance Review

We review the performance of Shoppers Stop departmental store chain. At the end of 2008, Shoppers Stop had presence in 12 Indian cities with the following store layout and count.

-Shoppers’ Stop 26
-Home Stop 4
-Mother Care 21 [12]
-Mac & Clinique 7
-Estee Lauder 1
-F&B Outlet 27 [14]
-Airport 3
-Crossword 31 [9]
-Arcelia 2 Figures in brackets represent shop in shop
Shoppers Stop Inorbit mallThe company operates 1.82 mn sft of retail space of which Shoppers Stop accounts for 1.3 mn.

Shoppers Stop [SS] department stores recorded sales growth of 6% while growth as measure of all the formats was higher at 9% in Q3 FY08. The sales per sft of retail space was Rs 2,262 for SS while across all formats it was Rs 2,258. Customer footfalls decreased by 20% in this period.

Private Label mix increased to 19% of the store merchandise while sales of this category grew by 3%. Apparels constitute 58% of the sales while Non Apparels consisting of Home, Leather, Watches, Jewellery, Electronics and Personal accessories constitute 42% of sales.

Shoppers Stop reported 0.60% shrinkage of total gross retail which is well below the industry average. First Citizen membership base increased to 1,181,000, an increase of 14% over last year and their contribution to sales increased to a whopping 72%.

Details of Shoppers Stop Conference Call is available here.