Shoppers' Stop set for ratings upgrade on back of profitable private labels

What could enhance margins further is the higher share of the beauty segment, now a tenth of sales

After two years of muted growth in same-store sales (SSS), Shoppers’ Stop is expected to see a revival in fortunes. The year 2017-18 was challenging, with rollout of the goods and services tax (GST), store renovations and increased competitive intensity. In FY19, the company is confident of achieving mid to high single digit SSS growth (this measures the increase in revenue from stores in operations for at least a year) and 100 basis point margin improvement. SSS growth was two to three per cent in the past two financial years; the margin was 5.7 per cent in FY18.
 
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