MAKING SHOPPING WITH US THE BEST PART OF YOUR DAY
We need to change ourselves and adapt to the new world of opportunities without losingour values and ethics on which we have built this organisation over the last 27 years.
It gives me great joy to write to you as the Chairman of Shoppers Stop. It has been anincredibly humbling journey for me from the position of a General Manager in 1991 to beon the pages of this Annual Report; from witnessing the Company open its first store atAndheri Mumbai to its 83rd department store at Nasik Maharashtra. And Ithank you for your continued support.
As we embark on this next chapter of our journey I would like to acknowledge somemajor changes. I would like to thank our long-term associates-the retiring Chairman Mr.Chandru L. Raheja and the outgoing Managing Director Mr. Govind Shrikhande-for theirunparalleled contribution to Shoppers Stop and wish them great success for the future. Iwould also like to thank Ms. Abanti Sankaranarayanan who stepped out of the Board andwelcome Ms. Ameera Shah and Mr. Robert Bready who have joined the Board during the lastfinancial year.
I would like to once again welcome here our new Managing Director and Chief ExecutiveOfficer (MD & CEO) Mr. Rajiv Suri who joined us in January 2018 as CEO and was thenelevated to current position in June 2018. His entry has re-energised our Leadership Teamwhich has also seen several key appointments being made. It is to say this has been animportant year in Shoppers Stop's recent history. The key appointments inter aliaincludes three Presidents across Buying and Merchandising functions Chief Marketing andCustomer Officer Chief Financial Officer and Chief Creative Officer.
The Board is united in its view that to win with today's customer Shoppers Stop mustsharpen its brand positioning. This will require us to streamline our product strategy andmake critical investments enabled by our ongoing focus on customer experienceoperational excellence and sustainable business practices. We believe that these changeswill help create lasting value for stakeholders. Throughout this report you will findhighlights of how our new strategic focus areas are being embedded in our organisation andour initial progress against the same.
The Indian economy is today witnessing its consumption growth story unfold making itone of the largest retail destinations in the world attracting large investments fromdomestic as well as international players. Consumer behaviour too is changing withexpectations of personalised experience across physical and digital. As a result retailfashion is witnessing a rapid change as well. Digitalisation is driving the need torethink faster. We also need to change ourselves and adapt to the new world ofopportunities without losing our values and ethics on which we have built thisorganisation over the last 27 years. All of this is presenting a plethora of opportunitiesthat we are well positioned to capitalise on. I want to assure you that your Company isfully geared to take on these opportunities and maintain its leadership position.
In this context Shoppers Stop is pursuing a greater consumer mindshare with anomni-channel holistic approach comprising 83 large stores in 39 cities besides 12HomeStop stores and 115 specialty beauty stores coupled with 83 Crossword stores ane-commerce website a mobile application (Endless Aisle) and growing a stronger bond withour shoppers. That our six million- plus loyalty programme members contribute to 76% ofour revenues continues to bear testament to that. We are focused on making shopping withus the best part of your day.
Shoppers Stop's performance during FY 2019 was good with progress across all areas andimproving the KPIs.
Your Company clocked a turnover of D3481.31 crores in the year This was a growth of6% over 2017-18 without considering the impact of AS115 and GST rate changes. EBITDA atD271.20 crores recorded an upsurge of 19.10% over the previous year (D227.64 crores). PATgrew by 578.7% to D78.75 crores.
Most importantly your Company has become debt free-a laudable feat. Your Companysustained its leadership position in the premium segment with strong brand equity and agrowing consumer base. Your Company is confident of steadily building this into a largeand profitable business over the coming years. Rajiv will cover in his report the detailsof the performance and path ahead for the next few years.
We continue to support diversity in all its forms across the organisation seeing howit brings a wide range of people and perspectives to the team. Our most important strengthand asset is our engaged Customer Care Associate workforce and our vibrant culture. Iwould like to take this opportunity to thank our great teams in all our markets who meetcustomers every day and are always working to give customers the best value.
A key intervention among others that we undertake as a socially responsiblecorporate enabling the integration of the marginalised members of our society into themainstream-giving them an opportunity to live a life with dignity. We have partnered withimplementing agencies to help fulfil our vision of empowering differently-abled people inretail and make lasting improvements in the lives of the retail workforce. This has shapedup as a mutually beneficial programme.
In FY 2020 we will continue to be guided by our customer love our compass and ourtool for identifying our most promising growth areas. We will draw upon our enduringstrengths-distinct brand equities superior product quality engaging consumercommunication and unparalleled service-and pivot towards the areas of premiumisation andbeauty where we are seeing the greatest opportunities emerge. We will broaden our reach toaccess younger consumer groups and in new emerging markets. I am confident that underRajiv's able leadership Shoppers Stop will drive transformation pursue customer delightwith renewed vigour and create sustainable value for all our stakeholders.
On behalf of the Board of Directors of Shoppers Stop
I thank you all once again for your continued trust confidence and support.
Customer Care Associate & Chairman