Shoppers Stop said it narrowed its first-quarter loss on Thursday, supported by continued demand from high-end consumers splurging on luxury watches, perfumes, and high-fashion clothing—despite inflationary pressures on middle-class spending budgets in urban cities.
Net loss for June quarter declined to Rs. 157.4 million (US $ 1.83 million) from Rs. 227.2 million (US $ 2.64 million) a year ago. Revenue from operations increased 8.6%, while like-for-like store sales grew 5%.
Shoppers Stop’s performance underscores increasing polarisation in India’s retail sector, with the premium segment remaining on the upswing. Shoppers Stop CEO Kavindra Mishra said that in an overcrowded market, premiumisation gives retailers a point of differentiation.
Off-line retailers serving the better-heeled, such as Metro Brands and Nykaa, have also gained from this trend in consumer behaviour, with luxury products picking up pace even as broader economic conditions remain challenging.
Shoppers Stop, which has global names such as Armani Beauty and Michael Kors under its roof, recorded double-digit growth in its watches division—19% higher than the year-ago quarter—and apparel segment—9% higher than the year-earlier period.
Leaving aside its budget-oriented INTUNE brand and online stores, the average price at which it sells in its own stores rose 3% year on year to Rs. 1,740 (US $ 20.84). Premium businesses contributed 67% of total revenue in the quarter, an 8-percentage-point jump over the previous year.
The firm sees this premium contribution increasing further, targeting 70% of total revenue by fiscal 2026-end.
