Shoppers Stop Shines in Q2 FY26: Premiumization Pays Off Amidst Market Shifts

Shoppers Stop Limited, a leading name in India's retail landscape, has delivered a robust performance in the second quarter and first half of fiscal year 2026, showcasing the effectiveness of its strategic pivot towards premiumization. Despite a cautious consumer environment marked by inflationary concerns and geopolitical uncertainties, the company reported a consolidated total revenue of INR 1,372 crore for Q2 FY26, marking a significant 13% year-on-year growth. Consolidated EBITDA stood at INR 28 crore, up 10%, while consolidated Profit Before Tax (PBT) improved by 19% to INR -13 crore, nearing profitability. This performance underscores the company's resilience and agility in navigating market challenges.

The core business, encompassing departmental stores, beauty, home, and SS.com, was the primary growth engine, contributing INR 1,346 crore in sales for Q2 FY26, an 88.2% share of the consolidated revenue. This segment witnessed a 7% like-for-like growth, with departmental store like-for-likes reaching a 10-year high of 9.4%. Beauty sales within the core business grew by 22% to INR 331 crore, with fragrances outperforming. The premiumization strategy has been instrumental here, with the premium product mix growing at 16% and now accounting for 69% of the total mix. New ventures, including INTUNE (value fashion) and SSBeauty.in (digital beauty), contributed INR 74 crore, representing 4.85% of sales. While these are still in investment mode and incurring planned losses, INTUNE showed positive like-for-like growth in Q2, a significant improvement from Q1. The Global Beauty Distribution business emerged as a standout performer, posting INR 106 crore in sales, a remarkable 103% year-on-year growth, and accounting for 6.95% of the consolidated revenue.

Strategic Pillars Driving Growth

Shoppers Stop's strategic initiatives have been pivotal to its Q2 FY26 success. The company's focus on strengthening brand love through proprietary IPs like "India Weds with Shoppers Stop" and "Gifts of Love" has fostered deeper customer connections. The First Citizen Club, a cornerstone of their loyalty program, now boasts 13 million members, contributing a staggering 83% to overall sales, with a 69% repeat purchase rate. The highest quarterly enrollments, including 32,000 Black Card and 208,000 Silver Card memberships, highlight its growing appeal.

Operational KPIs reflect this positive momentum: Average Transaction Value (ATV) is up 8%, Average Selling Price (ASP) by 6%, and Items Per Transaction (IPT) by 2%. This indicates customers are not only entering stores more frequently but also purchasing more premium items. The company's private brands, including "STOP," "Kashish," and "Bandeya," are now among the top 10 apparel brands during the festive season, demonstrating improved profitability.

New Ventures and Future Outlook

While new ventures like INTUNE and SSBeauty.in are still in their investment phase, they are showing promising signs. INTUNE, aimed at the high-growth value fashion segment, delivered positive like-for-like growth in Q2, a significant improvement from Q1's negative trend. The launch of INTUNE 2.0, with enhanced in-store experiences and a focus on supply chain efficiency, is expected to minimize losses and expedite its turnaround, with breakeven at the store level anticipated by FY27. SSBeauty.in is building a differentiated digital-led beauty ecosystem, focusing on curated offerings and experiential engagement, complementing the offline beauty business.

Management remains cautiously optimistic about the future, anticipating continued double-digit growth momentum in Q3 FY26, driven by the festive and wedding seasons. The company plans to open five new departmental stores and five INTUNE stores in Q3, with further expansion in Q4. Shoppers Stop is transforming into a premium lifestyle destination, leveraging its omnichannel model and customer-centric strategy to deliver sustainable, profitable growth. The Q2 FY26 results clearly demonstrate strategic clarity and disciplined execution, reinforcing investor confidence in the company's long-term vision.