Indian retailer Shoppers Stop's Q1 sales rise 6%, apparel grows 9%

Apparel category registered a solid 9 per cent YoY growth in Q1 FY26. The company attributed this growth to ongoing premiumisation, operational efficiency, and strategic customer engagement through its loyalty and omnichannel initiatives.

GAAP EBITDA climbed 21 per cent YoY to ₹176 crore (~$20.43 million), while non-GAAP EBITDA surged 68 per cent to ₹26 crore. The company’s GAAP gross margin improved by 30 basis points (bps) to 40.9 per cent, demonstrating margin stability despite an inflationary environment. Losses narrowed with GAAP profit after tax (PAT) at ₹18 crore compared to a loss of ₹23 crore YoY, Shoppers Stop said in a press release.

The premium product sales made up 67 per cent of overall sales, up 8 per cent YoY. The Intune value fashion chain also reported a two-fold increase in revenue to ₹68 crore, bolstered by four new store launches. Private brand sales stood at ₹156 crore, contributing 13 per cent to total sales and 18 per cent to apparel category revenue.

The First Citizen loyalty programme continued to serve as a cornerstone of Shoppers Stop’s growth strategy in Q1 FY26, contributing 85 per cent to overall sales and achieving a strong 70 per cent repeat purchase rate.

Black Card members accounted for 19 per cent of total sales—an increase of 500 basis points (bps) year-over-year (YoY)—driven by a 44 per cent surge in sales and a record 31,000 new enrolments, marking a 68 per cent YoY rise. Silver Card enrolments also saw healthy growth, reaching 195,000, up 27 per cent from the previous year.

Engagement initiatives such as the monthly First Citizen Select Days and the ‘India Weds with Shoppers Stop’ campaign drove loyalty performance, the latter generating ₹154 crore in sales (+46 per cent YoY) and drawing in 55,000 members.

As of Q1 FY26, the company operates 299 stores, comprising 112 department stores, 82 beauty outlets, 75 Intune stores, and 20 airport locations.

“Consumers are becoming more discerning and are willing to spend more. In a crowded marketplace, premiumisation allows retailers to stand out. The company plans to strengthen its digital capabilities, enhance customer retention, and leverage macroeconomic tailwinds such as a favourable monsoon and tax relief. Strategic capital allocation and inventory optimisation remain in focus to drive profitable growth,” said Kavindra Mishra, MD and CEO at Shoppers Stop Ltd.

ALCHEMPro News Desk (SG)