Shoppers Stop Limited · NSE:SHOPERSTOP
Shoppers Stop — Q2 FY20 Earnings Presentation
31 slides from Shoppers Stop's earnings presentation, Oct 23, 2019
Slide 1: Quarterly Performance: Q2 FY20
Quarterly Performance : Q2 FY20 1
Slide 2: Company at a Glance
COMPANY AT A GLANCE 1st ~ $500M Department 110M Customer Market Cap Store in India visits ~ 7.5K ~ 13.5K Employees Brand Associates 261 500+ Fashion and ~4.3M stores Beauty Brands retail space 2
Slide 3: Presence in 40 Cities
PRESENCE IN 40 CITIES Kolkata 3 3
Slide 4: Vision
VISION “To be an inspirational and trusted brand, transforming customer’s lives through fashion, beauty and a delightful shopping experience every time.” 4
Slide 5: Our Customer
OUR CUSTOMER Our Core customer is a young family where the woman is the primary influence. These upwardly mobile, middle to high income family shops across our stores for the widest selection of brands. We have a fast growing base of young consumers of 18-25 years of age. These customers are shoppin
Slide 6: Strategic Pillars
First Citizen Program Personal Shopper Program Strategic Pillars Exclusive Brands Beauty 6
Slide 7: First Citizen Loyalty Program
FIRST CITIZEN LOYALTY PROGRAM 6.5M 79% F I R S T C I T I Z E N LOYA LT Y C O N T RIBUTION TO PROGRAM MEMBERS C O M PA N Y S A L E S (Q2 : 190K additional members) • Key Growth Engine for the Business • New enrollment in Q2: 190K,+26% YoY, exhibiting strong affinity towards our brand. • Revenue contr
Slide 8: Personal Shopper
PERSONAL SHOPPER 17%+ C O N T RIBT UO N TO 2.8X AVERAGE TICKET SALES SIZE Providing a delightful shopping experience with our Personal Shopper Service. % Personal Shopper Contribution 17.3% 17.0% 15.6% 13.8% 12.9% Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 8
Slide 9: Private Brands
PRIVATE BRANDS 12%+ C O N T RIBUTION TO T O TA L S A L E S • Design Studio, Sampling Unit and Testing Labs are fully operational. • 4 new brands launched in AW19 • Glam by Disha Patani –20 Doors. • Jones New York – 19 Doors • French Connection U.K (FCUK) – 60 Doors, exclusive for Department Stores •
Slide 10: New Brand Launches AW19
New Brand Launches AW19 Women Men Kids (Relaunched) Accessories 12
Slide 11: Beauty
BEAUTY 150+ 16%+ C O N T RIBUTION TO BEAUTY BRANDS T O TA L S A L E S • Continued dominance in Beauty segment across all channels. • 6 New Locations in Q2 • Took over India Franchisee business of Jo Malone London, Luxury British perfume brand having 3 exclusive stores (Select Saket, Vasant Kunj & Pa
Slide 12: Digital Footprint: Omni Channel
DIGITAL FOOTPRINT Omni Channel – Symbiotic Relationship of Clicks & Bricks +18.3M +25,000 1.9% +7.2M VISITS PIN CODE CONTRIBUTUON MOBILE APP COVERAGE TO SALES DOWNLOAD • 1.2M App downloaded in Q2 • Platform frequently used by Millennials and Young Professionals to converse with us • Buy Online and C
Slide 13: Digital Footprint: Amazon
DIGITAL FOOTPRINT Amazon – Strengthen ties/ Re-launch Amazon Content • We participated in Amazon Great India Festival* and sales performance exceeded the expectation EDI Integration • 4 stores are live through EDI setup : Malad, Andheri, Bannerghatta Bangalore and Pacific Pune. • India’s only multi-
Slide 14: New Store Additions Q2 FY20: Gaur Noida
NEW STORE ADDITIONS- Q2 FY20: GAUR NOIDA 43000 SQ. FT. 300+ BRANDS DESIGNED BY – Schwitzke & Partner, Dusseldorf, Germany 14
Slide 15: New Store Additions During Q2: MAC
NEW STORE ADDITIONS DURING Q2- MAC MANTRI MALLESHWARAM GAUR NOIDA GHAZIABAD 15
Slide 16: Growth Acceleration
Growth Acceleration • Shoppers Stop lays foundation to accelerate growth for FY21 and beyond, by increasing the store openings in FY20 • 8 to 10 Department Stores • 40 Beauty Doors • Stores opened in H1 FY20 were EBITDA positive within 3 months of opening. 16
Slide 17: Increased investment in technology to improve customer experience
Increased investment in technology to use big data to improve Customer Experience and underpin growth with agility. SAP S4 HANA implementation in progress with TCS. • Support and enable a modern and flexible business model • Reduce complexity in Business Processes • Modernize system with Digital cod
Slide 18: Brand Campaigns
BRAND CAMPAIGNS Award winning campaigns creating strong 3 AWARD WINNING CAMPAIGNS customer affinity to the brand #CelebrateSisterhood – Rakhi Campaign • A video created celebrating Rakhi with a different perspective – celebrating sisterhood • Digital Media attained a cumulative reach of 12M users wi
Slide 19: Brand Campaigns
BRAND CAMPAIGNS #NATIONALLIPSTICKDAY – JULY 2019 • Campaign showcased a man wearing lipstick which broke the clutter among the retail industry advertising space • 7 Mn. Unique consumers reached on social media across channels • 3 Mn. Total views for the campaign video across channels • Campaign was
Slide 20: Brand Campaigns
BRAND CAMPAIGNS #JaagoTumiJaago – Pujo Campaign covering East festive season – Kolkata, Siliguri, Durgapur, Guwahati, Ranchi • Pujo campaign in entire east market across TV, Press, Digital and Catchment • Campaign in 4 regional TV channels and all digital platforms reaching over 4.6 million customer
Slide 21: Operational Indicators Q2 2019-20
Operational Indicators – Q2 -2019-20 Customer Entry (In lacs) Conversion % 10.7% 26.2% 4.4% 119.5 25.1% 106.7 Q2 18 Q2 19 Q2 18 Q2 19 Transaction Size (In Rs.) LTL- ASP (In Rs.) 3,196 6.0% 2.5% 1,200 1,170 3,016 Q2 18 Q2 19 Q2 18 43000 SQ. Q2FT. 19 300+ BRANDS DESIGNED BY – Schweitzer Group, Germany
Slide 22: Financial Overview: Q2 FY20
FINANCIAL OVERVIEW : SHOPPERS STOP LIMITED : Q2FY20 Non - GAAP Financials GAAP Financials Q2-20 Q2-19 Gr% Q2-20 Q2-19 Gr% MARGIN Revenue 1,070.3 1,075.7 -0.5% 845.3 864.5 -2.2% Other Income 14.5 14.8 18.1 2.6 • Lower Margins owing to intense promotions to remain competitive in subdued economy. Total
Slide 23: Financial Overview: H1 FY20
FINANCIAL OVERVIEW : SHOPPERS STOP LIMITED : H1FY20 Non - GAAP Financials GAAP Financials H1-20 H1-19 Gr% H1-20 H1-19 Gr% Revenue 2,169.8 2,123.9 2.2% 1,677.7 1,691.1 -0.8% Other Income 30.0 28.6 4.6% 20.5 9.7 111.3% Total Revenue 2,199.8 2,152.5 2.2% 1,698.3 1,700.8 -0.1% Margin 718.3 702.7 2.2% 70
Slide 24: Financial Overview: Balance Sheet
FINANCIAL OVERVIEW : BALANCE SHEET Particular Sep-19 Mar-19 Networth 960.8 977.6 Loan Fund 20.0 40.0 Total Liabilities 980.8 1,017.6 Fixed Assets & Lease Deposit 847.9 813.0 Investment 235.6 266.7 Investment Includes : Investment in Mutual Fund 45.5 42.5 Rs 53.9Crs.: Crossword Book Store Limited Inv
Slide 25: Financial Overview: Cash Flow
FINANCIAL OVERVIEW : CASH FLOW Particulars Sep 2019 Sep 2018 Cash Profit from Operations (after tax) 89.2 85.5 Increase in Creditors for Goods 94.8 53.8 Increase in Other Creditors and Liabilities 46.8 12.0 Increase in Inventories (52.7) (38.2) Increase in Loans & Advances & Sundry Debtors (51.7) 7.
Slide 26: Financial Overview: Key Financial Ratio
FINANCIAL OVERVIEW : KEY FINANCIAL RATIO Profitability and Efficieny Ratios Valuation Parameters Year To March Q2-FY20 FY19 FY18 FY17 FY16 Year To March FY19 FY18 FY17 FY16 Inventory Days 89 142 120 116 138 ROE(%) 12.6% 9.1% 6.4% 8.9% Debtors Days 3 4 4 3 2 ROCE(%) 12.6% 9.4% 6.3% 10.3% Creditors Da
Slide 27: Industry Recognitions
Industry Recognitions 28
Slide 28: Awards Q2 2019-20
AWARDS – Q2 –2019-20 MAPIC India’s Most Admired Retail Company of the Year Most admired Retailer of the year in Categories Customer Experience – Personal Shopper Dynamic Design & VM – Vasant Kunj Signature Store Visual Merchandising -VM for recycling clothes program with NGO Goonj Most Admir
Slide 29: Awards Q2 2019-20
AWARDS – Q2 –2019-20 Best Innovation & Creativity in a Digital Campaign - The Unclaimed Kendall+Kylie Virtual Handbag by Shoppers Stop Best BTL Campaign by a Retail Enterprise- The Unclaimed Kendall+Kylie Virtual Handbag by Shoppers Stop Best Multi Channel Campaign by a Retail enterprise - Sha
Slide 30: Disclaimer
DISCLA IM E R Certain statements in this release concerning our future growth prospects are forward-looking statements within the meaning of applicable securities laws and regulations, and which involve number of risks and uncertainties, beyond the control of the Company, that could cause actual res
Slide 31: Contact investor@shoppersstop.com
In case of any clarifications please contact on investor@shoppersstop.com 31