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Beauty biz strategic pillar; digital channels displaying strong performance: Shoppers Stop

earnings | Jan 21, 2022 11:05 AM IST

Beauty biz strategic pillar; digital channels displaying strong performance: Shoppers Stop

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Retail chain Shoppers Stop Ltd, on Thursday, reported its Q3 earnings. To understand the retail chain’s performance in greater detail and also its outlook, CNBC-TV18 spoke to Venu Nair, MD and CEO, Shoppers Stop. Nair affirmed that beauty business is a strategic pillar for the company. The segment grew 40 percent in Q3. He also mentioned that the company's digital channels are continuing to display exceptional performance.

Retail chain Shoppers Stop Ltd, on Thursday, reported a consolidated net profit of Rs 77.32 crore for the third quarter ended December 2021. The company had posted a net loss of Rs 25.11 crore in the October-December quarter a year ago. Its revenue from operations was up 33.82 percent at Rs 958.11 crore during the period under review as against Rs 715.97 crore in the corresponding quarter of the previous fiscal. According to the company, it has returned to profitability with a zero net debt.

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To understand the retail chain’s performance in greater detail and also its outlook, CNBC-TV18 spoke to Venu Nair, MD and CEO, Shoppers Stop.
Shedding light on the company’s Q3 performance, Nair said that they witnessed a strong rebound. He admitted that they might experience a minor glitch due to COVID third wave but it isn’t a cause for any major worry for the company.
"We have had a strong sales rebound in Q3 and the business has seen consistently strong same store sales during the quarter. We may see a minor glitch due to COVID third wave and it will have a small impediment in the extremely positive customer sentiments that we have been seen," he said.
"Our digital channels continue to display exceptional performance," he shared. Additionally, Nair mentioned that the company is in the process of investing into new stores and also revamping the older ones.
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Delving deeper into the beauty business, which currently faces a stiff competition from Nykaa, he affirmed that it is a strategic pillar for the company. He explained that the segment infact saw a 40 percent growth in Q3. He believes beauty to be an experience-led category. He added that the company launched 28 new brands in the beauty segment in Q3.
He said, "Beauty is one of our strategic pillars. It's a key part of our business and in physical retail, we are one of the largest in beauty. We are growing very nicely online as well. In the quarter that's finished, our beauty business grew by 40 percent and it accounted for 17 percent of our sales mix with a growth of 75 basis points from a participation point of view."
"What is helping us recover is the strength of the brands that we have and also the new brands that we have been launching. Just in the quarter, we have launched 28 new brands and for the year, we have now launched 17 new brands," he mentioned.
On the advertising front, he mentioned that the company is using social commerce and Metaverse to reach to its customers.
"Advertising is part of what we do. And what's important is also reaching out to the right consumer and the area that we have been focusing on is social commerce and using the whole mindset of customers of Metaverse and using social commerce to reach customers," he said.
Watch the video for the full interview. 
(With PTI inputs)
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