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Shopper’s Stop Ltd. (SSL), a pioneer in modern retailing in India, along with its subsidiary company Hypercity Retail
(India) and Crossword Bookstores, operates more than 33.28lacs sq ft in the country. Shoppers Stop is involved in
retailing through department stores, specialty stores, entertainment zones and large hypermarkets. The company has a
strong retail presence in 14 cities with 36 stores. Some of the key takeaways of the 3QFY11 results are as follows:
3QFY11 Results- Festive Season Fuelled Growth
Shopper’s Stop’s operating income saw a growth of
68% to INR 6,396mn in Q3FY11 as compared to INR
3,817mn in Q3FY10. The growth was mainly due to the
festive season in Q3 resulting in increased footfalls and
sales. Sales per Sq.Ft for Shoppers stop department
stores stood at INR 2,415 in Q3FY11 as against INR
2,081 registering a growth of 16%.
Revenue growth – Volume driven
Shopper’s Stop’s Like-to-like store volume grew by 15%
during Q3FY11. Footfalls increased by 53% to 8.5mn
while conversion ratio fell down by 500bps to 23%.
Transaction size increased by around 7% to INR 2,409
in Q3FY11. Average selling Price increased by 750bps to
INR 1,060 thereby fuelling growth in revenue.
Margins Under Pressure
Reported EBITDA margins were down by 500bps due
to increase in Cost of Goods Sold and the Employee
cost. Both the expenses moved northwards by 85%
putting a downward pressure on the margins. Lower
share of bought out inventory and increase in VAT
prices also played their part in bringing the margins
down. Overall Operating expenditure increased by 74%
Y-o-Y. PAT margin decreased by 200bps to 1% due to
increase in Financial cost and Tax by 9% and 34%.
Revenue Streams – Product Mix
Apparels contributed 52% of sales while the non apparels
accounted for 42%. In apparels, contribution from
menswear decreased slightly by 50bps to 31.3% while
womenwear gained 40bps to 18.4%. Kidswear accounted
for 8.7% showing no change on Y-o-Y.
Store and Consumer Metrics
This quarter SSL added one Shoppers Stop store at
Aurangabad & one M.A.C. store in Chennai. Crossword
stores were opened at Bhopal, Aurangabad, Chennai and
Bengaluru, taking the total count to 67. HyperCity also
expanded its footprint by opening a store in Bhopal.
1lakh new members were added to the First Citizen
Loyalty Programme taking the total count to more than
19 lakhs members. The company plans to open 4 more
stores by FY11 and 16 over FY12E and FY13E.
Outlook
Going ahead, volume could be affected by inflation.
Strong pressure on merchandise pricing is expected due
to increase in rise of cotton prices in Q4FY11E.
Appreciation of 10-15% in selling price of apparels is
expected in Q1FY12E. However margins of the company
are expected to come under pressure due to increase in
pricing, non-apparel share in sales and merchandise
procurement.
Company Background
Shopper’s Stop has been promoted by K.Raheja Corp. Group which is one of the leading groups in the business of real estate development and hotels in the country.
Lifestyle Retailing
Shopper’s Stop
The company’s flagship business of department stores is manifest in Shoppers Stop. Currently it operates a chain of 36 stores in 14 cities. It houses a host of international and domestic brands across categories such as apparel, accessories, cosmetics, home & kitchenware and also its own exclusive brands.
Some international premium brands retailed at Shoppers Stop are Austin Reed, Mustang, Playboy, Calvin Klein, French Connection, Tommy Hilfiger, Espirit, Benetton, GAS, Chanel, Lancome, Guess, Hugo Boss, Diesel, Armani and US polo to name a few.
Home Stop
Home Stop is the first-of-its-kind premium home concept store offering a wide range of home products across categories along with some of the most reputed national and international brands.
It is one stop shop for all home needs ranging from home décor to furniture, bath accessories to bedroom furnishings, mattresses to draperies, carpets to modular kitchens and health equipment, all under one roof.
It currently has 4 stores with presence in Bangaluru, Delhi, Mumbai and Navi Mumbai.
Speciality Retailing
Crossword
Crossword is the leader in the lifestyle bookstore category with a unique product mix of books, magazines, CD ROMS, music, stationery and toys. Currently it operates 67 stores.
Mothercare & Early Learning Centre (ELC)
Mothercare, UK’s premium international brand for maternity, infant and childcare products, currently has 29 stores (including 7 standalone stores) with presence in 11 cities.
Early Learning Centre (ELC), UK’s number one educational toy brand for children aged 0-6 years is available at select Shoppers Stop stores.
Estee lauder Group of Companies
Shoppers Stop has entered into a non exclusive retail agreement with world renowned cosmetics major Estee Lauder to open stores for international brands like M.A.C, Estee lauder and Clinique in India.
As on Q3FY11, Shoppers Stop has 16 M.A.C stores with presence in Mumbai, Bengaluru, Hyderabad, Chennai, Delhi, Pune and Amritsar. Estee lauder has 3 stores, one each in Bengaluru, Mumbai and Delhi. Clinique currently has 8 stores including 2 standalone stores.
Mixed Retailing
Hypercity
Hypercity operates in ‘big box mixed retail format’. Its offerings include food and grocery, general merchandise and apparel. Currently it operates 8 stores with presence in Mumbai, Delhi, Bengaluru, Amritsar, Jaipur and Bhopal.
Other Initiatives
Airport Retailing
Currently has 1 store at Hyderabad and 2 at Bengaluru Domestic Airport. 4 Duty free stores are run by a JV company with the Nuance group AG at the international airports in Bengaluru and hyderabd.
Timezone Entertainment
Shoppers Stop has forayed into entertainment sector by acquiring a 45% stake in Timezone entertainment operating family entertainment centres. Currently it has 11 doors in leading metros
India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details �� ��
Shopper’s Stop Ltd. (SSL), a pioneer in modern retailing in India, along with its subsidiary company Hypercity Retail
(India) and Crossword Bookstores, operates more than 33.28lacs sq ft in the country. Shoppers Stop is involved in
retailing through department stores, specialty stores, entertainment zones and large hypermarkets. The company has a
strong retail presence in 14 cities with 36 stores. Some of the key takeaways of the 3QFY11 results are as follows:
3QFY11 Results- Festive Season Fuelled Growth
Shopper’s Stop’s operating income saw a growth of
68% to INR 6,396mn in Q3FY11 as compared to INR
3,817mn in Q3FY10. The growth was mainly due to the
festive season in Q3 resulting in increased footfalls and
sales. Sales per Sq.Ft for Shoppers stop department
stores stood at INR 2,415 in Q3FY11 as against INR
2,081 registering a growth of 16%.
Revenue growth – Volume driven
Shopper’s Stop’s Like-to-like store volume grew by 15%
during Q3FY11. Footfalls increased by 53% to 8.5mn
while conversion ratio fell down by 500bps to 23%.
Transaction size increased by around 7% to INR 2,409
in Q3FY11. Average selling Price increased by 750bps to
INR 1,060 thereby fuelling growth in revenue.
Margins Under Pressure
Reported EBITDA margins were down by 500bps due
to increase in Cost of Goods Sold and the Employee
cost. Both the expenses moved northwards by 85%
putting a downward pressure on the margins. Lower
share of bought out inventory and increase in VAT
prices also played their part in bringing the margins
down. Overall Operating expenditure increased by 74%
Y-o-Y. PAT margin decreased by 200bps to 1% due to
increase in Financial cost and Tax by 9% and 34%.
Revenue Streams – Product Mix
Apparels contributed 52% of sales while the non apparels
accounted for 42%. In apparels, contribution from
menswear decreased slightly by 50bps to 31.3% while
womenwear gained 40bps to 18.4%. Kidswear accounted
for 8.7% showing no change on Y-o-Y.
Store and Consumer Metrics
This quarter SSL added one Shoppers Stop store at
Aurangabad & one M.A.C. store in Chennai. Crossword
stores were opened at Bhopal, Aurangabad, Chennai and
Bengaluru, taking the total count to 67. HyperCity also
expanded its footprint by opening a store in Bhopal.
1lakh new members were added to the First Citizen
Loyalty Programme taking the total count to more than
19 lakhs members. The company plans to open 4 more
stores by FY11 and 16 over FY12E and FY13E.
Outlook
Going ahead, volume could be affected by inflation.
Strong pressure on merchandise pricing is expected due
to increase in rise of cotton prices in Q4FY11E.
Appreciation of 10-15% in selling price of apparels is
expected in Q1FY12E. However margins of the company
are expected to come under pressure due to increase in
pricing, non-apparel share in sales and merchandise
procurement.
Company Background
Shopper’s Stop has been promoted by K.Raheja Corp. Group which is one of the leading groups in the business of real estate development and hotels in the country.
Lifestyle Retailing
Shopper’s Stop
The company’s flagship business of department stores is manifest in Shoppers Stop. Currently it operates a chain of 36 stores in 14 cities. It houses a host of international and domestic brands across categories such as apparel, accessories, cosmetics, home & kitchenware and also its own exclusive brands.
Some international premium brands retailed at Shoppers Stop are Austin Reed, Mustang, Playboy, Calvin Klein, French Connection, Tommy Hilfiger, Espirit, Benetton, GAS, Chanel, Lancome, Guess, Hugo Boss, Diesel, Armani and US polo to name a few.
Home Stop
Home Stop is the first-of-its-kind premium home concept store offering a wide range of home products across categories along with some of the most reputed national and international brands.
It is one stop shop for all home needs ranging from home décor to furniture, bath accessories to bedroom furnishings, mattresses to draperies, carpets to modular kitchens and health equipment, all under one roof.
It currently has 4 stores with presence in Bangaluru, Delhi, Mumbai and Navi Mumbai.
Speciality Retailing
Crossword
Crossword is the leader in the lifestyle bookstore category with a unique product mix of books, magazines, CD ROMS, music, stationery and toys. Currently it operates 67 stores.
Mothercare & Early Learning Centre (ELC)
Mothercare, UK’s premium international brand for maternity, infant and childcare products, currently has 29 stores (including 7 standalone stores) with presence in 11 cities.
Early Learning Centre (ELC), UK’s number one educational toy brand for children aged 0-6 years is available at select Shoppers Stop stores.
Estee lauder Group of Companies
Shoppers Stop has entered into a non exclusive retail agreement with world renowned cosmetics major Estee Lauder to open stores for international brands like M.A.C, Estee lauder and Clinique in India.
As on Q3FY11, Shoppers Stop has 16 M.A.C stores with presence in Mumbai, Bengaluru, Hyderabad, Chennai, Delhi, Pune and Amritsar. Estee lauder has 3 stores, one each in Bengaluru, Mumbai and Delhi. Clinique currently has 8 stores including 2 standalone stores.
Mixed Retailing
Hypercity
Hypercity operates in ‘big box mixed retail format’. Its offerings include food and grocery, general merchandise and apparel. Currently it operates 8 stores with presence in Mumbai, Delhi, Bengaluru, Amritsar, Jaipur and Bhopal.
Other Initiatives
Airport Retailing
Currently has 1 store at Hyderabad and 2 at Bengaluru Domestic Airport. 4 Duty free stores are run by a JV company with the Nuance group AG at the international airports in Bengaluru and hyderabd.
Timezone Entertainment
Shoppers Stop has forayed into entertainment sector by acquiring a 45% stake in Timezone entertainment operating family entertainment centres. Currently it has 11 doors in leading metros
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