Shoppers Stop reported sales of Rs.371.2Crs (US$50mn) and EBITDA loss of Rs.83.3Crs (US$ 11mn) in the quarter (non-GAAP). Q2 performance has been impacted by intermittent lockdowns, Maharashtra and Mumbai were closed until 2nd week of August and the number of operating days were 20% lower than last year. The store timings were restricted and customers continue to be cautious in visiting stores. During this quarter, customer visits were mission based, resulting in significantly higher conversion and ATV. Footfall had increased sequentially in 3 months. Shoppers Stop has continued to engage with customers through social media campaigns, and a number of initiatives such as live video assistance for online buying, chat enabled messenger services, etc.
E-commerce sales grew by 50% year on year, contributing to 7.8% of the total revenue. Shoppers Stop is focused on its complete digital transformation and the strengthening of its omni-business. During the quarter user interface progressed on App and Website and the page download optimization improved. Shoppers Stop reached out to customers in various innovative ways and improved customer’s online interactions with Personal Shoppers. This resulted in additional 22.000 First Citizens shopping online. First Citizen trust on Shoppers Stop remains encouraging with a healthy sales mix of 83% (+6% vs LY). Private Brands mix to overall shares increased to 15.5% in Q2, with increased product offerings. Shoppers Stop has made savings of Rs.314Crs (US$42.5mn) vs last year in the first two quarters through number of initiatives, despite opening 11 new stores in FY20. The company’s current focus is to conserve cash, maintain short-term liquidity and strengthen the balance sheet given the unprecedented times.