Shoppers Stop Ltd — Q4 FY26

Shoppers Stop Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=A4gT8BWysPA Published: 7 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Q4 and FY26 earnings conference call of Sharpest Top Limited. 0:10 10 seconds As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation 0:18 18 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch room. 0:28 28 seconds I now hand the conference over to Mr. 0:30 30 seconds Prren Prehumar from Densu 1 investor relations team. Thank you and over to you Mr. Prem Kumar. 0:39 39 seconds Thank you Michelle. Good morning and thank you all for joining us on the shopper stop Q4 and FY26 earnings 0:46 46 seconds conference call. Today we have with us the senior management represented by Mr. 0:52 52 seconds Kavindra Mishra, customer care associate, managing director and chief executive officer and Mr. Panka Chadurvedi, customer care associate and chief financial officer. 1:03 1 minute, 3 seconds We will begin the call with the opening remarks from the management after which we will have the forum open for the interactive Q&A session. I must remind 1:12 1 minute, 12 seconds you that the discussion in today's earnings call may include certain forward-looking statements and must be viewed therefore in conjunction with the 1:20 1 minute, 20 seconds risk that the company faces. Please restrict your questions to the quarter performance and to the strategic questions only. Housekeeping questions 1:28 1 minute, 28 seconds can be dealt with separately with the IR team. I would now request Mr. Kendra Mishra for the opening remarks. Thank you and over to you sir. 1:37 1 minute, 37 seconds Thank you Prane. Good morning all. I am joined on the call with uh along with Biju in addition to my colleagues from 1:45 1 minute, 45 seconds finance team Panka who's our new CFO M JP and Rohit. We have uploaded the investor presentation on our corporate and stock exchange website. 1:55 1 minute, 55 seconds Let me start with talking about the key highlights for the year followed by highlights for the quarter and subsequently on the current operating 2:02 2 minutes, 2 seconds environment and our focus for the coming financial year. 2:08 2 minutes, 8 seconds The departmental store business crossed 5,000 crores revenue for the first time which is a big milestone for us. At the start of the year we had given a 2:16 2 minutes, 16 seconds guidance of mids singledigit LFL and I'm very happy to share that we ended the year with a 4.7% which is our highest level LFL in a decade 2:25 2 minutes, 25 seconds particularly after two consecutive flattish LFL sales for FI 24 and 25. 2:31 2 minutes, 31 seconds We reversed the continuous decline in customer entry by recording 3.8% 8% customer entry growth in like forl like stores which augers well for us in terms of our premieration strategy. 2:43 2 minutes, 43 seconds We had the highest ever additions to our first season loyalty program with 9.4 lakh new recruits. The premium end of 2:51 2 minutes, 51 seconds our loyalty which is our black card program has reported the highest ever 67,000 new recruitments and highest ever renewals of 66,000 with a renewal rate being impressive 74%. 3:03 3 minutes, 3 seconds Demonstrating deep value proposition from customer p perspective besides personalized service standards helped us to increase the loyalty base at 13.5 3:12 3 minutes, 12 seconds million and the total contribution during the year was at 84% with a repeat rate of 69%. 3:21 3 minutes, 21 seconds Both the above have helped us to move the pronation contribution in stores by 3.6%. 3:26 3 minutes, 26 seconds Now we are at 69% and the ABV for the year has gone up by 7%. showing core operational strength. 3:34 3 minutes, 34 seconds Our personal shopper program which is central to our exponential retail strategy recorded a 4% increase in contribution this year taking the 3:41 3 minutes, 41 seconds contribution up to 26% from a 22% last year. 3:46 3 minutes, 46 seconds Sales generated through personal shoppers grew by 24% and it touched 1,257 crores of revenue last year. 3:56 3 minutes, 56 seconds Overall nonapparel's business continues to outperform following nonappal power categories posted robust growth which has helped us in driving overall growth and premarization. 4:06 4 minutes, 6 seconds Watches grew by 16% YI. We sold close to six lakh watches during the year which translates into 70 watches sales per hour. 4:16 4 minutes, 16 seconds Similarly, fragrances grew by 12% YI. We sold close to 12.1 lakh units during the year which is equivalent to selling 150 4:24 4 minutes, 24 seconds units of fragrances every hour. Handbags grew by 10% by we sold 4.7 lakh bags 4:32 4 minutes, 32 seconds which was approximately 60 bags per hour. 4:37 4 minutes, 37 seconds Now let me talk about the private brand business. 4:40 4 minutes, 40 seconds Private brand business continues to be a key strategic pillars pillar in terms of offering differentiated range and covering the gap for set of categories. 4:49 4 minutes, 49 seconds It had a very good performance in terms of profitability driven by improved productivity, lower discounts and premation. 4:55 4 minutes, 55 seconds During the year, we reduced inventory by 40 crores. We have also identified additional spaces in the box and categories where private brands have a 5:03 5 minutes, 3 seconds role to play. We believe that men's ethnic, western women's wear, women's Indian wear and kids wear are categories where private brands have got a very 5:11 5 minutes, 11 seconds important role to play and hence we are expanding current brands like Kashish and Mandya. We also have just launched fatty girls a premium apparel line for 5:19 5 minutes, 19 seconds young girls which is now expanded to 69 stores. 5:24 5 minutes, 24 seconds We will continue to elevate the product offering to higher mix of premium and natural fabrics, enhance design, language and styling and switch launch of prevailing trends. 5:34 5 minutes, 34 seconds Let me talk about the beauty business. 5:36 5 minutes, 36 seconds The company's beauty business, including Global Sis Beauty, delivered revenue of 1,281 crores during the year, registering a healthy year-on-year growth of 17%. 5:46 5 minutes, 46 seconds We deeply engage with customers through social media interactions, makeovers, and master classes revolving around expression, engagement, and education to drive consumption. 5:56 5 minutes, 56 seconds Beauty category followers be based cross 1.6 million on Instagram and 440,000 on YouTube. Our 6:04 6 minutes, 4 seconds beauty distribution business continued its strong growth trajectory generating revenue of rupes 426 crores which is equivalent to rupees 650 crores of GMV 6:13 6 minutes, 13 seconds with a stellar 81% growth bio and delivering a three-year kagar of 90% which makes us which would make us the 6:21 6 minutes, 21 seconds largest beauty distributor in the country. 6:24 6 minutes, 24 seconds During the year, GSSB introduced 20 plus new and exclusive premium brands to the Indian market, strengthening its premium beauty portfolio and further 6:33 6 minutes, 33 seconds differentiating its value proposition to name a few. In full line brands, we had Shishido and Serge Lutens. In fragrances, we launched Barach, Michael Kor, Steve Madden, Mobla and Tobi Bush. 6:44 6 minutes, 44 seconds And in skinsare, we launched Slay. 6:47 6 minutes, 47 seconds During the year, we launched one boutique store each of Armani and N taking the total number of premium boutique stores to seven. 6:54 6 minutes, 54 seconds The performance underscores beauty as a strategic pillar for shopper stock aiming high growth through strategic partnerships, digital acceleration and 7:03 7 minutes, 3 seconds store expansion. Now let me talk about the intune business. In tune had a slow start. However, with focus on improving 7:10 7 minutes, 10 seconds productivity and unit economics over the past two quarters have helped us stabilize the business and position it for sustainable growth. Key call outs 7:18 7 minutes, 18 seconds for the in tune for the year were we recorded a revenue of 282 kores which was a growth of 46% yi. We opened 14 7:26 7 minutes, 26 seconds stores during the year. Total store count now stands at 84 stores across 39 cities. 7:33 7 minutes, 33 seconds Relentless focus on inventory freshness through inseason clearance. Online accessibility helped us through reducing inventory by 36 covers. II 7:41 7 minutes, 41 seconds structured CRM outreach. uh we were able to drive improvement in key KPIs repeat customer mix improved from 35% to 45% 7:50 7 minutes, 50 seconds and items per ticket sustained at 3.8 eight during the year we have seen a turnaround in LFL trajectory from 7:58 7 minutes, 58 seconds February 26 onwards April also continues to see a LFL momentum in India now let me talk about the ecom business 8:07 8 minutes, 7 seconds during the year the company invested in technology to upgrade both UIUX with a mandate to have robust omni channel experience 8:15 8 minutes, 15 seconds as we speak large part of the investments have already taken place and in this financial year focus will be on scaling volumes at improved profitability 8:23 8 minutes, 23 seconds With improved customer inface for the month of April 26, we have seen a 60% growth bio wide driven by improvement in conversion. 8:32 8 minutes, 32 seconds In this journey, we also planning to integrate ssb.ins.com as a micro site to sweat marketing investments favorably. 8:40 8 minutes, 40 seconds Now, let me talk about store expansion and financial disciplines. 8:45 8 minutes, 45 seconds We maintained a disciplined and prudent capital allocation approach during the year with a strong focus on driving returns and strengthening the balance sheet. 8:53 8 minutes, 53 seconds I'm very happy to state that because of strong operational efficiency we were we were able to generate uh the cash 9:01 9 minutes, 1 second operations strong cash from operations of rupes 301 crores. This is the highest in last 8 years supported by working capital optimization of rupes 155 9:10 9 minutes, 10 seconds crores. During the year we opened 27 stores, eight departmental stores, three beauty, two hometock, 9:17 9 minutes, 17 seconds 14 in tune and we renovated three stores including a ju with state-of-the-art design offering premium and excellent assortment with a capital investment of rupees 114 crores. 9:29 9 minutes, 29 seconds The total inventory optimized for the year was 153 crores. 9:34 9 minutes, 34 seconds Shopper Stop has also made focus investments across infrastructure, network and security, delivering tangible business and operational 9:41 9 minutes, 41 seconds outcomes. These include the highest NIT maturity score Indian retail which is 3.6, early adoption of DPDP compliance 9:50 9 minutes, 50 seconds and a material reduction in system outages and service ticket volumes resulting in 100% uptime and system availability. 9:58 9 minutes, 58 seconds Now let me talk about the highlights for Q4. 10:02 10 minutes, 2 seconds Let me address the departmental store business first. 10:06 10 minutes, 6 seconds The departmental store recorded a 4.6% like forlike sales growth despite a challenging environment marked by global disruption. 10:14 10 minutes, 14 seconds Operational [clears throat] KPIs continue to improve with the ATV or average bill value growing up by 8% and the ASP growing up by 11%. And most 10:22 10 minutes, 22 seconds importantly, the customer entry which grew by 3.2% 2% like for like and we are seeing a consecutive three quarters of LFL customer entry increase. 10:33 10 minutes, 33 seconds We continue to strengthen the emotional connect with customers through our proprietary gifts of love brand IP. The Valentine's Day campaign under this 10:40 10 minutes, 40 seconds delivered strong customer engagement and traction which has reached which has which has had a reach of 165 million and a view of 282 million. 10:50 10 minutes, 50 seconds Non- apps category reported 13% growth reflecting curving consumer preferences for premium offerings. Also, it's a reflection of our strategy which which 10:58 10 minutes, 58 seconds pivots a lot around non-apparent. We opened four departmental and one home stop during the quarter. 11:04 11 minutes, 4 seconds We launched several new premium brands during the quarter. And just to name a few, we launched Bomb Mercier. It's a premium Swiss brand with average ASP of 11:12 11 minutes, 12 seconds 1.5 lakh in watches. We launched Brooks Brothers, Juicy Couture, Huba Boss, Charles Trivet. 11:20 11 minutes, 20 seconds We also launched vineyards and crystal Bohemia in home category. 11:26 11 minutes, 26 seconds The core business which is a departmental store business delivered an epit of rupes 50 kores up by 52% yi. 11:34 11 minutes, 34 seconds It excludes the one-off gain of rups 22 crores recorded last year from the reversal of excess prior provisions. 11:42 11 minutes, 42 seconds Let me talk about the beauty business now. 11:46 11 minutes, 46 seconds The total B beauty segment recorded revenue of 309 crores which grew by 17% YI led by fragrance which grew by 37%. 11:56 11 minutes, 56 seconds Overall contribution of beauty now stands at 21% to the revenue. 12:01 12 minutes, 1 second The SSB recorded revenue of rups 114 crores which is on 69% yi sustaining the growth momentum. We onboarded several 12:10 12 minutes, 10 seconds new premium brands as well and we added 20 new points of sale. 12:16 12 minutes, 16 seconds Right now the total presence is 565 points of sale across 27 retailers. 12:22 12 minutes, 22 seconds Now let me talk about in tune. In tune recorded a sale of 67 crores which grew by 24% yi. 12:30 12 minutes, 30 seconds Improvement in sales trend witnessed from February onwards is what we have seen and the momentum continues in April. 12:38 12 minutes, 38 seconds We introduced a new price point of rupees 1299 across the categories and initial response is very encouraging. 12:45 12 minutes, 45 seconds On gross margin side, we have seen improvement quarter on quarter by led by improved intake margin and lower discounting. We opened four in stores during the quarter. 12:55 12 minutes, 55 seconds Now let me address the current operating environment and then I will talk about the way ahead for business. 13:01 13 minutes, 1 second We have seen a pick up in demand from midFebruary and it's sustained through April as well and it's sustaining in the first few days of May. Strong wedding 13:10 13 minutes, 10 seconds calendar, growing local travel and general buoyancy economy are the favorable triggers to demand in coming quarters. Having said that, we do 13:17 13 minutes, 17 seconds foresee a challenge on two fronts. First one being on fuel price and raw material inflation which may impact demand in short term. As shopper stop is already 13:26 13 minutes, 26 seconds into premation journey, we expect the impact to be relatively limited compared to mid-segment players. 13:34 13 minutes, 34 seconds Second is on supply chain uncertainties. 13:37 13 minutes, 37 seconds They may cause some intermittent disruptions in merchandise availability particularly in H2. However, given our diversified sourcing and scale, we are 13:45 13 minutes, 45 seconds confident of effectively managing and mitigating this risk. We head off for business. 13:52 13 minutes, 52 seconds I think the first important thing is we we are going to double down on premation as the strategy has started delivering results on ground for us. As we speak, 14:00 14 minutes we have become the first port of call for almost any premium brand coming to India and we are using this strength to work with strategic partners to drive business. 14:09 14 minutes, 9 seconds So continuously working on the brand mix and churn and make space for high performers is the key. Focus on generating consumer walk-ins. 14:17 14 minutes, 17 seconds One of the big wins for us last year was the increase in customer entry and we are investing in building on the same both through brand marketing as well as loyalty. Our investments in partnership 14:27 14 minutes, 27 seconds with hib is one such effort to do differentiated programs and get a new audience coming to shopper stop. 14:35 14 minutes, 35 seconds Drive expansion of the brand in key markets and premium malls. I'm delighted to share that our repositioning efforts have started yielding results and we are 14:42 14 minutes, 42 seconds increasingly becoming the departmental store of choice with some of the leading mall developers. We plan to add nine departmental stores during the year. 14:51 14 minutes, 51 seconds Renovation of Maki stores. We have seen with both in orbit Malad and Juu that once we renovate our Maki stores, the throughput really increases. 15:01 15 minutes, 1 second We have [clears throat] seen an amazing uptick there and we are we'll be renovating five stores this year with our new premium identity and all these are Maki stores. 15:11 15 minutes, 11 seconds Let me talk about Intune. This is the year where we will be able to see major improvement in in tune business driven by improved productivity, gross margin expansion and tightening the cost base. 15:20 15 minutes, 20 seconds We have come out of the inventory issues and overall aita loss shall be culted to half of FI26 loss. 15:27 15 minutes, 27 seconds Our focus will be on driving efficiencies and turning around unit economics of existing stores in H1 and therefore we shall evaluate 15:34 15 minutes, 34 seconds thereafter we will we shall evaluate expansion. 15:38 15 minutes, 38 seconds We are also in putting investments in technology and we are right now piloting RSID for uh in tune stores. 15:47 15 minutes, 47 seconds We are looking at break even at business level in in tune in FI28. 15:53 15 minutes, 53 seconds Let me talk about the investments and the cash flow. In FI26, we have been able to generate high operating cash flow with tight controls on working 16:00 16 minutes capital and have retired 109 crores of debt. On similar line, we will continue to focus on high internal acurals in FI27 through following initiatives. 16:09 16 minutes, 9 seconds Strong surge in profitability driven by LFL growth and productivity improvement. 16:14 16 minutes, 14 seconds Rationalization of losses from new businesses and I spoke about them in my speech. Tight control over costs and continuous working capital optimization. 16:25 16 minutes, 25 seconds These internal acral shall be utilized towards investments towards growth. I think opening of new stores is essential and we and we are in the process of 16:32 16 minutes, 32 seconds opening some very marquee stores and refurbishment of our top stores. I think that's super important for us. 16:40 16 minutes, 40 seconds Additional capital infusion to enable beauty distribution business growth and we will be debtree by Q4 FI27 16:48 16 minutes, 48 seconds which I think would be a major bless for us over the last two years. Uh 16:56 16 minutes, 56 seconds unfortunately Dwang is not there today in the call because of some personal exigency. So I would be addressing any queries if any about in tune. Uh my 17:05 17 minutes, 5 seconds speech is over now and we can now open the floor for interesting Q&A session. Thank you. 17:11 17 minutes, 11 seconds Thank you very much sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask questions may please press 17:19 17 minutes, 19 seconds star and one on the touchstone phone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use only handsets while asking a question. 17:32 17 minutes, 32 seconds Ladies and gentlemen, we will wait for a moment while the question assembles. 17:45 17 minutes, 45 seconds The first question is from the line of Samir Gupta from India info line. Please go ahead. 17:52 17 minutes, 52 seconds Hi, good morning everyone and thanks for taking my question. Uh firstly sir, I'm looking at the core business in FI26 18:00 18 minutes and the AIDA margin on a gross sale or a non-GAAP sale that you record is around 18:07 18 minutes, 7 seconds 4%. This is in a year of a 5% LFL and uh strong cost control exercised over the 18:13 18 minutes, 13 seconds years. Now we have had a guidance of a high singledigit margin for this 18:20 18 minutes, 20 seconds business. Uh uh uh just wondering that we would still need like 3 4 years of sustained LFL uh to be in that ballpark. 18:29 18 minutes, 29 seconds Are there any other levers that can result in better margin performance uh like in the foreseeable future or this is a correct thesis or correct assessment? 18:41 18 minutes, 41 seconds So I think uh Sami thanks for for the question. Uh no you are right I think it will take uh couple of years for us to 18:49 18 minutes, 49 seconds reach there. Having said that there are a lot of initiatives in terms of uh you know we we have shut around seven stores 18:56 18 minutes, 56 seconds uh last uh last year we are in the process of premiumization. Uh I think there are a lot of projects which we are 19:05 19 minutes, 5 seconds driving to ensure that the gym for us grows substantially. So while I think it might take a couple of years but the general direction is is what we are uh 19:14 19 minutes, 14 seconds focusing on just to give you a sense when we looked at our our business and our spaces 19:21 19 minutes, 21 seconds dispassionately uh there are a couple of categories where we believe and for example I spoke about um uh or I didn't speak about home 19:29 19 minutes, 29 seconds but for example home within shopper stop we have identified in the box there are certain spaces where we can release it and and we can use it more efficiently 19:37 19 minutes, 37 seconds for national That's that's what we are doing. Similarly, we are driving a heavier nonapparel mix because I think 19:45 19 minutes, 45 seconds watches is something which is really firing well for us along with fragrances uh beauty and and handbags. So, I think we are as we primize you will see the 19:53 19 minutes, 53 seconds journey becoming faster. Having said that, I think two years is a is a fair assumption. Yeah. 20:01 20 minutes, 1 second Got it sir. Thanks. Thanks for that detailed answer. Uh second question is on the gross margin. Now I look at it again on non-GAAP sales. Uh it is down 20:10 20 minutes, 10 seconds 100 bits this quarter. Uh for the full year also if I look at it it's down 60 bits. Just wanted to understand what is driving this and is in a way the higher 20:19 20 minutes, 19 seconds LFL is is is it linked to the the uh uh you know uh uh margin weakness in the gross gross margin line. 20:28 20 minutes, 28 seconds No, I think this is uh more more to do with so we did mention about the one-offs u in the gross margin case 20:36 20 minutes, 36 seconds right uh so that oneoff was coming from the margin because if I if I talk only about the operational I think we have 20:44 20 minutes, 44 seconds there's there's a positive uh uh movement if I just look at BAU and I just remove the operational uh as in the 20:51 20 minutes, 51 seconds one-off we actually the g margins have improved by by 50 uh bits why you don't foresee or why don't you see in the in 21:00 21 minutes the uh P&L is right now it is colored with a one-off. Yeah. 21:05 21 minutes, 5 seconds So what is exactly this one off? Sorry I I I probably missed it. 21:11 21 minutes, 11 seconds Yeah. So panker this side I'll just take this uh see this one off is nothing but uh on account of you know prudent 21:18 21 minutes, 18 seconds accounting we have had some provisions uh you know in our cog side and uh last year when after due assessment when we 21:27 21 minutes, 27 seconds didn't need these provision you know we did the unwinding that was bit significant uh last year it's a very uh normal thing that happens year on year 21:35 21 minutes, 35 seconds you know providing for certain items and then unwinding but uh since last year it was bit more significant. Hence, you know, we are just calling this out. 21:45 21 minutes, 45 seconds Oh, it's a provision right back in the base. 21:47 21 minutes, 47 seconds Yeah, absolutely. 21:49 21 minutes, 49 seconds Oh, okay. Okay. Okay. Okay. Then then that that that settles it. Uh uh lastly, if I may squeeze in you, you did mention the 21:57 21 minutes, 57 seconds Sorry. Hello. Can I also address your first question with some more detailing uh on so while the gross margins is is that 22:06 22 minutes, 6 seconds journey is there but I think AITA you will see lot of improvements because as I have detailed through my presentation lot of cost initiatives are have been uh 22:15 22 minutes, 15 seconds triggered in so you will see substantial improvement in the AITA right so uh just just to close the whole loop on this 22:23 22 minutes, 23 seconds yeah sure but you still will say that two years is a their uh uh uh u uh assumption on on the high single digit 22:31 22 minutes, 31 seconds margin uh uh expectation with the cost initiative, right? Okay. Yeah. Yeah. Yeah. 22:37 22 minutes, 37 seconds Sure. So, last question if I may squeeze in. Uh uh you did mention on the guidance on department stores. Uh but I missed it on Intune. Uh uh can you can 22:46 22 minutes, 46 seconds you like elaborate your plans on the expansion on on and and on this front? 22:51 22 minutes, 51 seconds Sure. So in in in the case of in tune as I mentioned right now we are not looking at opening stores in H1. I think we have 22:59 22 minutes, 59 seconds just got out from the all the operational issues and inventory issues in in tune. Right now the trajectory is very positive. I want that to be 23:07 23 minutes, 7 seconds happening uh for the next two quarters before we start opening in tune stores again. So the focus the investments on 23:14 23 minutes, 14 seconds in tune remain but I just want this year to be a cleaner year where we are able to build operational efficiencies and build the throughputs from the store before we uh move ahead. Yeah. 23:26 23 minutes, 26 seconds So fair assessment that it is still a work in progress uh for us and we are still assessing uh uh uh the strategy 23:33 23 minutes, 33 seconds here. Uh I mean it's fine to wait but will that be a fair assessment? 23:40 23 minutes, 40 seconds Samir, it's a it's a two year it's a two-y year old business. Okay. Any two-year-old business will have some in 23:49 23 minutes, 49 seconds Shopper stop after 31 years is a work in progress business because you change the same customers change. So I think it was but natural that it it is a work in 23:57 23 minutes, 57 seconds progress business. Having said that whatever steps we had to take to get the product to get the operations to get the store learnings I think they are in 24:05 24 minutes, 5 seconds place. We just need to ensure that we drive the efficiencies. I mean all businesses are are work in progress. I I I don't think there is any harm in committing that because that's how the 24:13 24 minutes, 13 seconds nature of business is customers change, market change around it. Yeah. 24:18 24 minutes, 18 seconds So if you just refer to you know our presentation wherein we are specifying new venture performance update and look at Q4 specifically for the new ventures. 24:28 24 minutes, 28 seconds So while on a fourear basis the negative AITA is increased but if you look at Q4 you know the negative is flattish. So 24:35 24 minutes, 35 seconds somewhere that negative aida uh declining has been arrested if I can 24:42 24 minutes, 42 seconds call you know give a bit more uh color to that. So Q4 if you look specifically on the on the new uh ventures which 24:51 24 minutes, 51 seconds includes inol that has been uh you know quite positive for us. 24:56 24 minutes, 56 seconds Sure sir but uh problem is that if we don't add stores competition is still adding at a very high pace and uh we may 25:05 25 minutes, 5 seconds you know just play catchup uh in this journey then so that that is the concern I understand every business is work in 25:11 25 minutes, 11 seconds progress but I think that's a lot humble uh commentary from your side but yeah uh best of luck 25:20 25 minutes, 20 seconds sorry I didn't get he's I mean I mean if you're like not adding stores and competition keeps adding you 25:28 25 minutes, 28 seconds you'll probably you know uh just be playing catch-up here. Uh uh that that is the worry. 25:34 25 minutes, 34 seconds No no don't worry Samir. Uh we we we we are cognizant of what the market is doing and competition is doing. We are 25:41 25 minutes, 41 seconds also aware that we need to do things in the right way. We are also aware that you know uh we need to get the unit 25:49 25 minutes, 49 seconds economics right and once the unit economics are right then then the then the expansion see expansion is one of our strengths with our ability to and 25:57 25 minutes, 57 seconds and the the resources which we have and the presence which we have opening of stores is the least issue the the 26:05 26 minutes, 5 seconds ability of the stores to give the throughput and and provide profitability I think it's very very important it's a capeex model I I don't think that that 26:14 26 minutes, 14 seconds is any issue for us for us the focus right now is to get this and I think we we are on on on this journey so maybe uh and you know a very similar discussion 26:23 26 minutes, 23 seconds you and not in case of not with you but it was happening with private bands when I had just taken over and we said that it takes two to three quarters to put 26:31 26 minutes, 31 seconds the product all the things right and once it starts happening then you start seeing the growth so I I'm pretty confident that we will deliver it so we are cognizant of that we are aware and 26:39 26 minutes, 39 seconds we will work on it so don't worry on that yeah the the market is so v that uh you So this will there is huge space for 26:47 26 minutes, 47 seconds everybody provided the business models are right. 26:50 26 minutes, 50 seconds Sure sir that's all from me and thanks and all the best for the future. Thank you. Thanks Amir. 26:56 26 minutes, 56 seconds Thank you. The next question is from the line of ped sha from Evan the spark institutional equities. Please go ahead. 27:05 27 minutes, 5 seconds Yeah uh hi thanks for the opportunity. 27:07 27 minutes, 7 seconds Uh I will just uh start with uh the question where the previous participant left. So you said that we'll be kind of 27:14 27 minutes, 14 seconds uh waiting and consolidating on in tunes for next two quarters. So just wanted to know what are what will be what will you 27:23 27 minutes, 23 seconds qualify as a success in next two quarters for us to again go back on that expansion mode. 27:28 27 minutes, 28 seconds Yeah. Uh thanks uh pages. I think the fundamentally the SPSS is the is the 27:35 27 minutes, 35 seconds space or the space productivity is what what we call them is something which we need to see a incremental number there. 27:43 27 minutes, 43 seconds Uh I think we are very sure about the margin expansion because that's happening uh correctly. Uh the the SPSS 27:50 27 minutes, 50 seconds it should go up by another 25 to 30% for us to be confident and that not in one or two months but couple of quarters. I 27:57 27 minutes, 57 seconds think that's something which we are working towards and uh that's the number we are looking at sgest 28:04 28 minutes, 4 seconds sorry did you say 354% 25% 25 30% and then what will like what are the 28:12 28 minutes, 12 seconds interventions we are making to achieve that oh so I I think there are multiple interventions right from the freshness in the in the stores which ensures that 28:22 28 minutes, 22 seconds the product is not or you know so uh weekly delivery freshest in the stores, operational changes, making the stores 28:30 28 minutes, 30 seconds little lighter in inventory, improving the quality of uh u the staff. I think the interventions have have been made 28:38 28 minutes, 38 seconds across the board. Also, as I mentioned, we we uh have just tested out a line at 28:46 28 minutes, 46 seconds 1 to99 line which is delivering at least 4x of the profit of the of of the throughput which a normal line does 28:54 28 minutes, 54 seconds because as lally elevated. So I think the intervention is happening across the board to drive that. 29:02 29 minutes, 2 seconds Sure. Sure. and and uh just just to elaborate on that. So uh what is the 29:09 29 minutes, 9 seconds problem statement there? Is it that uh the brand has got the traction footfalls are happening and we are not able to convert because of merchandise or is it 29:18 29 minutes, 18 seconds that footfall itself is an issue and hence we need to work on brand also to kind of get the get the traction going from the footfall itself. 29:28 29 minutes, 28 seconds So if I divide this I think it's a great question. First of all, I think there are two parts to it. What we are seeing is that the person who is coming and 29:36 29 minutes, 36 seconds shopping uh the conversions are very strong, the IPS are very strong and the repeat rates are very strong. Right? I 29:44 29 minutes, 44 seconds think the brand is still very new in its uh journey. So we are spending money on marketing. 29:51 29 minutes, 51 seconds We have built the CRM muscle what the CRM muscle which we have in shopper. We are building the same for in tune as well. both in terms of ability to reach 30:00 30 minutes out to the customers with new lines. So I think that's the journey and that's why I'm saying this will take this uh year to for the for the customers to 30:07 30 minutes, 7 seconds become you know coming back again and again. So I don't think the issue is on the product or conversion anything it's just it's it's a very nent brand it will take time to settle in. I think that that's where we are right now. 30:18 30 minutes, 18 seconds Perfect. The second very uh hearty performance on premiumization uh and then watches also. So just wanted 30:27 30 minutes, 27 seconds to get some insight that in a year where uh urban job creation right from it has been under pressure uh how to reconcile 30:36 30 minutes, 36 seconds and obviously your customer might not be only from IT but uh how to reconcile this premiumization trend any oneoffs 30:43 30 minutes, 43 seconds any base uh effect there and do you see that kind of stretching or extending to FI27 and beyond? 30:51 30 minutes, 51 seconds No, I think uh uh t I think we should also meet oneonone. You you asked very very good questions. So I think you are 30:59 30 minutes, 59 seconds like very very good question you have asked. You know TJ what what is what what what is happening is that premation is a way of is the pivot which we took 31:07 31 minutes, 7 seconds two years back right. Uh that was a time when we said okay how do we differentiate versus other other players 31:16 31 minutes, 16 seconds in the market and when you say you are premiumized then you premise not only on product categories you premise on brands you then also discontin few stores then 31:25 31 minutes, 25 seconds you you you work on personal shoppers so there are then you give up spaces and you put uh play areas in the store I 31:33 31 minutes, 33 seconds think we have gone through this journey in the last two years or so invest money on marketing of shopper stop as a brand so premation we what we are seeing is 31:41 31 minutes, 41 seconds consistency. So for example if my weighted average growth for shopper stock is say 4.7 for the year my premium 31:49 31 minutes, 49 seconds uh or premium plus categories the growth rates are far higher. So what we are seeing is that in cons that consistently 31:57 31 minutes, 57 seconds people are coming to us for that. So if you if you look at our competitive scenario and the market scenario for 32:04 32 minutes, 4 seconds anyone who is uh who is which is a departmental store which is a premium department store we are the only people who who is there. So I think that's 32:12 32 minutes, 12 seconds something which is very very uh strong for us and we are not resting on it. So both in terms of whether it's the merchandise which is exclusive only with us the brands which you are launching. 32:22 32 minutes, 22 seconds So I think we are able to provide that experience to the customer which was always a core shopper store promise when we all when we all started this. So I 32:30 32 minutes, 30 seconds think that's something which is very strong. The the other thing is when we look at premium categories we what we are seeing is the SPSS 32:39 32 minutes, 39 seconds are quite high. So the sales productivity is coming is very very high and in this journey of premation we have identified five categories which are our 32:46 32 minutes, 46 seconds power categories right and it will be very interesting to know what are those power categories. One is watches, other is beauty, then we uh talk about 32:55 32 minutes, 55 seconds handbags, then we are talking about footweares and shades. So these so this amazing mix of all these merchandise, 33:02 33 minutes, 2 seconds there is no retailer who does it. So I think we have been able to carve a niche and we we don't share our brand loyalty scores in this as a part of the deck. 33:11 33 minutes, 11 seconds when when we are doing our brand loyalty scores, we are seeing that continuously both top of the mind awareness and recall is becoming better on year on 33:21 33 minutes, 21 seconds year. So I think it's a it is not only one product category it's a it's a mix of mix of everything and we believe that 33:28 33 minutes, 28 seconds increasingly at the top there won't be any or there are not many people who are buying for that customer and that is where we come in with our play. So I think we have taken a stance and we have 33:37 33 minutes, 37 seconds been honest to it and it has now started showing uh results there. 33:42 33 minutes, 42 seconds It's a last one. Uh premiumization means you have foreign brands there and if that's so does that conflict with the private label ambition that we have? 33:52 33 minutes, 52 seconds No. So you know and so we have spoken about this multiple times. 33:58 33 minutes, 58 seconds Uh I don't see for me I'm a retailer first 34:05 34 minutes, 5 seconds right? So my productivity and the net gym roof is the most important KPI for me. So when we look at shopper stock we 34:13 34 minutes, 13 seconds can clearly see that there are product categories where uh we have the need for power play need for the for 34:22 34 minutes, 22 seconds for private bands because they become the recruiters for us. So for example Indian wear or western women's wear or kisses somewhere these brands are the 34:31 34 minutes, 31 seconds private bands have got a very big role to play because they are the recruiter brands that might not necessarily be the case for men's wear because which is a 34:38 34 minutes, 38 seconds more logo-driven business or which is uh uh or or or non-Apps which is again a more logo-driven business. So I think that we are very clear there is no 34:47 34 minutes, 47 seconds conflict in fact what we are doing is we are our private bands also we are premiumizing in the sense we are making better products. So if you were used to 34:54 34 minutes, 54 seconds use poly before the that has uh that blend has moved to cotton base or linen. 34:59 34 minutes, 59 seconds So premission is the way of life for shopper stock across every category every product category whether it's 35:05 35 minutes, 5 seconds private brands or uh or or or national brands we will continue to give a better product to the customer and I 35:14 35 minutes, 14 seconds think they they don't conflict. In fact for us Indianware for example uh has a has a higher productivity than any of 35:21 35 minutes, 21 seconds the national brands there. So we know uh how these categories play with them and I think they all blend together. For me just increasing the private band 35:29 35 minutes, 29 seconds contribution is not the or sales is is not the benchmark as which which we as a group look at. We look at the profitability of the business. So we 35:37 35 minutes, 37 seconds know which categories and private brands do well for us. We are double downing on premation. In fact we just launched girls which are a private brand for uh 35:46 35 minutes, 46 seconds girls business doing really well. We started with five stores. we have expanded to 69 and there the throughputs are higher than any of the international uh girls brands also. Yeah. 35:58 35 minutes, 58 seconds Uh thanks for detailed answers sir and all the best for coming. Okay. Thank you. 36:06 36 minutes, 6 seconds Thank you ladies and gentlemen. In order to ensure that the management will be able to address questions from all the participants in the conference kindly 36:14 36 minutes, 14 seconds limit your questions to only two per participant. Should you have a follow-up question, please rejoin the queue. We'll take the next question from the line of 36:23 36 minutes, 23 seconds Ain Karumani from Motila Losal. Please go ahead. 36:28 36 minutes, 28 seconds Good morning, sir. Uh, congrats on good set of members from the department stores. So, my question is regarding to the beauty. Majority of the growth in 36:36 36 minutes, 36 seconds beauty is being given by the distribution business. If I exclude that and look at it, uh, there's a significant closure of beauty evos 36:43 36 minutes, 43 seconds during this fiscal year. So uh what are we learning from days closest and how do we see this going forward? 36:51 36 minutes, 51 seconds Okay. So uh maybe I will answer part of it and then Viju if you can. Uh yeah. 36:56 36 minutes, 56 seconds Yeah. So you know uh if one we have to look at beauty as overall business. We can't differentiate because that's not the way we should look at business. 37:06 37 minutes, 6 seconds Number one. Number two the national brand business in uh in beauty continues to outperform. In fact, uh the growth rates are quite high there and we we did 37:15 37 minutes, 15 seconds mention about the fragrance businesses uh going forward. I think in previous calls also we have mentioned about the 37:23 37 minutes, 23 seconds STE business being under pressure where that's where the standalone business of uh stores come in. We are doing a lot of interventions there working closely with 37:31 37 minutes, 31 seconds the uh partner company to or the with the brand partner to increase the walk-in throughput there. We are 37:40 37 minutes, 40 seconds launching a a map card or or loyalty card especially for Etsy Lauder stores starting from u 1 of I think I think 37:49 37 minutes, 49 seconds next week. So there are a lot of inputs happening there and did you want to talk about beauty as a whole u especially what's happening? 37:56 37 minutes, 56 seconds Sure. Sure. No no so a great a great question and uh and uh great observation. So I I think I will just step back a little bit to give you a 38:04 38 minutes, 4 seconds overview about the landscape. See, please understand that uh 10 years back or 20 years back, the penetration of beauty in each and every mall or each 38:13 38 minutes, 13 seconds and every catchment was too little. And at that time, it made great sense to have a very compelling uh boutique or a 38:20 38 minutes, 20 seconds beauty standalone store strategy. But then as as we see that retail is growing u shoppers along with all the other 38:28 38 minutes, 28 seconds retail partners are growing footprint in beauty, it is also some sometimes neciated by the fact that like we do in shopper stop. what works well for us we 38:36 38 minutes, 36 seconds double down and what is not working well for us we sort of close down so I think we should just see it in that light and nothing beyond that and as Kavi 38:44 38 minutes, 44 seconds explained um the the the category is quite uh heated up and uh there is a lot of u let's say investments coming from 38:52 38 minutes, 52 seconds uh from everywhere so for us as a as a retailer primarily uh our drive and promises to the customer and that's 38:59 38 minutes, 59 seconds where we want to again double down on categories that we have been quite strong where we had strong leadership and great representation. So what we are 39:07 39 minutes, 7 seconds trying to do which we have always uh tried to hold on is the philosophy of giving a greater expression engagement and education to the customer and that 39:15 39 minutes, 15 seconds is something that we continue to do and Kavid mentioned that there is uh strong headwinds on the ST portfolio 39:22 39 minutes, 22 seconds some of the brands which are global iconic brands but that is something intervention wise uh loyalty wise we are working around the other aspect again to 39:31 39 minutes, 31 seconds to to agree fully with Kavi that I think beauty we need to see it in the overall spirit of Because at the end of the day uh retail and distribution is catering 39:40 39 minutes, 40 seconds to consumers. Maybe one is to the end consumer and one is to the uh the mid-consumer. So we still see and we 39:46 39 minutes, 46 seconds still are learning what works well for us and that is where we are trying and bringing in more better brands both in retail and in distribution. So if you 39:54 39 minutes, 54 seconds think about it if you look at the new brands that we are signing is also going to reinforce uh beauty within retail as well as the distribution landscape is concerned. 40:04 40 minutes, 4 seconds Got it. Got it sir. And speaking particularly of the distribution set also uh if I look at it like uh given the P that you are having the revenue 40:13 40 minutes, 13 seconds per P has obviously doubled in this year. So how much could that be the potential that we could further for the next coming years? 40:21 40 minutes, 21 seconds So so you know um the fact of the matter is yes it is quite progressive and strong but I think it is also at the phase because we have been acquiring 40:29 40 minutes, 29 seconds brands which has been launched media towards the later part of the year. So the annualization effect is yet to come through. Uh but to give a ballpark, I 40:37 40 minutes, 37 seconds think we will continuously grow the uh the uh productivity as we go. But uh it also depends on the category uh 40:45 40 minutes, 45 seconds particularly on fragrances. Uh it's quite strong. Uh it is also followed by a reasonably strong u push on the makeup and I think skincare will also follow 40:54 40 minutes, 54 seconds and I'm talking largely on prestige and lifestyle not on the mast side. So I think the trend is here to stay to your to your question. 41:04 41 minutes, 4 seconds Got it. That's it. Thank you. Thank you. Thank you. 41:10 41 minutes, 10 seconds The next question is from the line of Ashto Jeter from ICICI security. Please go ahead. 41:19 41 minutes, 19 seconds Hello. Hello. Good morning sir. 41:24 41 minutes, 24 seconds Thank you. Thank you for the opportunity sir. So uh first question is on uh the premiumization thing. So you have mentioned that the premium portfolio is 41:32 41 minutes, 32 seconds actually doing well and uh uh typically what happens is that a richer uh no premium mix generally tends to have a 41:40 41 minutes, 40 seconds better margin but uh like uh I understood your point on gross margin but like uh going forward can we assume that uh the AITA margin should 41:49 41 minutes, 49 seconds ultimately uh improve and uh like what would be the uh exact LFL threshold uh 41:56 41 minutes, 56 seconds if like you can tell for the business uh which we actually uh you know need to cross the revenue momentum basically to 42:05 42 minutes, 5 seconds uh uh deliver uh no more than the operating cost. So ultimately there should be a profitable growth something like that. 42:13 42 minutes, 13 seconds Yeah. Uh no uh uh thank you for the question. Uh so there there are two like let me let me uh address all parts of your queries. 42:25 42 minutes, 25 seconds First is uh the premium brands need not necessarily have a higher margin. They have a higher gym because the because 42:33 42 minutes, 33 seconds the throughputs are stronger. So they obviously give us higher uh rupee value margin. Right. So I think that's uh 42:40 42 minutes, 40 seconds that's very important. Uh I'm sure you you have been covering us for quite some time. Ours is a very high operating uh 42:49 42 minutes, 49 seconds leverage business, right? So as the LFS keep on growing we will uh we will see the rupee value profitability going in 42:56 42 minutes, 56 seconds very very strongly. My sense is that for the coming year uh we are looking at a performance which is which is going to 43:05 43 minutes, 5 seconds be little better than what we have delivered as a team in uh uh and I'm talking about like forl like stores. Uh so that's one. Second we are also 43:14 43 minutes, 14 seconds opening some very very good very very good stores. So uh and you will see u in that we are launching one on 7th which 43:21 43 minutes, 21 seconds is tomorrow we are launching in uh uh visak then we will be launching Goa with DS we are going to launch Pacific Japur these are all very market stores and 43:30 43 minutes, 30 seconds stores which will become a 75 80 100 core stores over the next two to three years. So what we are doing is we are changing the mix of the way we looked at 43:37 43 minutes, 37 seconds business and it falls in line with our uh strategy of premation. The third thing is I think while the margin we 43:45 43 minutes, 45 seconds will continue to be where we are and we have given a guidance of improvement over the next two years you will see lot more initiatives on cost saving because 43:52 43 minutes, 52 seconds we believe that still there is some uh some amount of money there which we can cut and as uh I don't know whether I 44:01 44 minutes, 1 second have addressed through in tune partly we have addressed but to give a sense of our new businesses whatever losses we made in the in the FI26 we will at least 44:10 44 minutes, 10 seconds half it down in FI2 27. So we are going to see AITA throughput coming through various inputs. One is obviously the 44:18 44 minutes, 18 seconds revenue growth like for like and since we have now shut most of the non-performing stores I think that will start adding up LFL plus new store 44:25 44 minutes, 25 seconds openings. We will see a better rupee gross margin coming from the premation strategy. we will see very very strong 44:33 44 minutes, 33 seconds and active work happening on the cost controls and uh removal of uh formats which are which we feel are just taking 44:42 44 minutes, 42 seconds up the space and not delivering the value. So, so my my sense is we will see a far better number as a percentage. To tell you the exact number, I I I don't 44:50 44 minutes, 50 seconds think I would be able to tell you the exact number how we are going to end up this year in FI27 or uh but but it it it should be a good number. 44:59 44 minutes, 59 seconds Understood. And thank you. Thank you for uh for that answer. And my next question uh is on this uh supply chain 45:05 45 minutes, 5 seconds disruption. So uh like uh I got your point on the inflation inflationary 45:13 45 minutes, 13 seconds pressure uh which can be expected because of this. But uh just wanted to understand uh like in any way uh these 45:20 45 minutes, 20 seconds supply chain disruptions uh put a shopper stop uh in a better position when compared to regional or value 45:27 45 minutes, 27 seconds players uh in in terms of sourcing the merchandise or anything like uh you do do you have any uh edge because of this? 45:36 45 minutes, 36 seconds I I agree to that. See uh now look at shopper stock right one obviously we work with closely with lot of big brands 45:44 45 minutes, 44 seconds uh and you know as a part of strategy we are going deeper with brands. So even if you have to increase the space I I we are we are working as a team with with 45:52 45 minutes, 52 seconds our brand partners and giving to to performing brands. So I think what what's happening is in this whole thing where the fabric is going to be a little bit of a challenge at least for two or 3 46:01 46 minutes, 1 second months the bigger brands will be able to get the merchandise and because we have a deeper partnership with them uh we will be able to get merchandise. So I 46:08 46 minutes, 8 seconds think that's one second because we are very strong on the nonapparel part of the business versus any other format 46:17 46 minutes, 17 seconds which is primarily apparel the impact on us is going to be lesser. Third for our private brand business which is uh 46:24 46 minutes, 24 seconds around uh 12 to 12 13% of our overall business there we have already tied up our uh supply chain for the next 3 to 6 46:32 46 minutes, 32 seconds months. So I think you will see little bit of a consolidation happening and that's not only for shoppers. My sense is that across the across the businesses 46:40 46 minutes, 40 seconds bigger players in the market would be able to command a better or or they will have a lesser supply chain disruption versus others. 46:49 46 minutes, 49 seconds Okay understood. And sir, one last question. Uh so uh just wanted to understand what is the rational for uh 46:57 46 minutes, 57 seconds know launching the SKU at uh 1299 for in tune like when most value retailers usually have it below a,000 rupees. So I 47:06 47 minutes, 6 seconds understand that it could be like to drive realizations but uh any other point to that? 47:12 47 minutes, 12 seconds No, I I think see at the end of the day India is aspirational across categories. 47:17 47 minutes, 17 seconds Okay. Uh so if you have to give a product good product you have to give a good product which is uh maybe little bit more 47:26 47 minutes, 26 seconds natural fabric less polyester in India's heat uh better wash uh sustains after 10 47:33 47 minutes, 33 seconds washes and doesn't go away. So I think there is a value to the product which you need to give. So what we are giving in $1299 maybe at 2le 9 in brands or 47:42 47 minutes, 42 seconds even more but our idea is to give a better product and and I think this whole $9.99 and lower and this all this is mentally in our head that customer 47:50 47 minutes, 50 seconds for the right product and and occasion would be able to buy this and actually what we was and you know this is something internally we have been debating for the last uh three to four 47:59 47 minutes, 59 seconds quarters and finally we said okay let's test this out the 1299 product actually has delivered higher sell through and the and the which is so we are doing 48:08 48 minutes, 8 seconds close to 8 to 9% of sell through of this product which versus a three and three three and a half or four so it's like a two 2.5x throughput so price is not the 48:18 48 minutes, 18 seconds is not the only concern I think it's a product price value which we derive and I am a great believer in that that if 48:25 48 minutes, 25 seconds these models have to sustain we can't be we we we have to we have to address to all the consumers especially the special consumers so I think that's where we 48:34 48 minutes, 34 seconds want to do do this and also issues understand our repeats are very strong and that is because in tune provides a great quality. So I think that's 48:41 48 minutes, 41 seconds something very very important for us. Uh so that's why we tried 1299. This uh was done in Indian wear uh because that was 48:50 48 minutes, 50 seconds a category which actually lended naturally and the response has been very good. 48:55 48 minutes, 55 seconds Okay. Okay. Understood sir. Thank you sir and uh all the best for FY27. Thank you Ash. 49:04 49 minutes, 4 seconds Thank you. 49:06 49 minutes, 6 seconds The next question is from the line of Jignesh Kamani from Nepon Mutual Fund. Please go ahead. 49:12 49 minutes, 12 seconds Yeah. Hi Kav and entire team. Hope I'm audible. Yes sir, please. 49:18 49 minutes, 18 seconds Yeah. So just uh happy to see that you are uh for time being you are putting a break on the internet expansion. So what are the cash flow you are generating 49:26 49 minutes, 26 seconds from the business? Now larger proportion will be utilized for the department store which is the core of uh your pure and where the competition is actually 49:34 49 minutes, 34 seconds non-existent. So in that context uh when you are uh aiming to add only nine store next year any reason for a lower store 49:42 49 minutes, 42 seconds or week store edition because uh we have just 113 store opportunity is very large. uh we are generating almost 300 K 49:50 49 minutes, 50 seconds kind of operating cash loan now and so what limit you from expanding and if I give the context like west side is adding 35 store uh per quarter uh and 50 50:00 50 minutes store in the year which require also 25,000 to 30,000 larger square ft so just want to understand on that part 50:07 50 minutes, 7 seconds yeah uh hi Jesh uh thanks for the thanks for the query you know u 50:16 50 minutes, 16 seconds see every every format is different right and it's not only about my senses or about the size but if we have to be premium there are certain markets where we believe we should be there and 50:25 50 minutes, 25 seconds certain markets we will not be there or in terms of expansion and the availability of stores that's one 50:33 50 minutes, 33 seconds uh for us when we have said guided for nine stores a these are all mari stores b these are like very good locations are 50:42 50 minutes, 42 seconds number one number two we are also renovating five of our largest and the most and the largest stores. I think 50:49 50 minutes, 49 seconds that's one. The third thing is key this guidance which we give is primarily based on the signed properties and the visibility of opening during the year. 50:58 50 minutes, 58 seconds We have uh you know uh we have few more stores which we have signed if they are able to come between this because a lot 51:06 51 minutes, 6 seconds of cases we it's also a function of building it to your requirement or with the mall opening in and on and we have seen in the past that typically these 51:13 51 minutes, 13 seconds things get delayed here and there. So I mean like Westside is opening 35 stores but I think for us if you are able to 51:21 51 minutes, 21 seconds open nine stores which will do on an average 45 to 50 crores I think that's a that's a that's a super addition for us. 51:27 51 minutes, 27 seconds So I think that's where we are focusing on uh and we are not to saying that okay we'll only open nine stores if we get the right properties we'll open more 51:35 51 minutes, 35 seconds stores. Price is a function of that but as you rightly mentioned till the time we are fixing the uh operational and we 51:42 51 minutes, 42 seconds are seeing the the uptake in in tune we will continue and build on on shopper store because I think uh that's 51:49 51 minutes, 49 seconds something where we are seeing very good traction as as on date sure second thing on the conversion so if you take about for the full year or 51:57 51 minutes, 57 seconds like to like growth is pretty healthy at around 5%age even in current but at the same time consum uh consumer entry is almost 4%age so conversion and still we 52:06 52 minutes, 6 seconds need to improve. So what are the challenging we are facing with we are not able to increase the customer conversion and the footfall entry we have already taken care of uh right as 52:15 52 minutes, 15 seconds of now. So so conversion we did uh I think if I look at the overall this thing conversion we did actually faced a 52:23 52 minutes, 23 seconds higher or a greater problem in Q3 uh Q4 it became little better than where we are and we have started seeing an 52:31 52 minutes, 31 seconds improvement in uh April onwards. uh we also we also see that you know as as you change the mix you will have certain 52:38 52 minutes, 38 seconds kind of customers coming in certain c coming in and going out so I think it's a settling down period for us uh just to give you a sense our ABVs actually have 52:47 52 minutes, 47 seconds gone through the roof right so right now uh 8 to 10% is where what we experiencing in what we experienced in April as well so so you will have you 52:55 52 minutes, 55 seconds have multiple uh things coming in in the play uh so I think it's a process that will settle down Jignesh uh right because we we are we are changing ing 53:04 53 minutes, 4 seconds the brands we are changing the mixes so there would be some settling down for this but as long as we are able to get higher customer entry and the repeats 53:11 53 minutes, 11 seconds keep on going I think uh that's a that's an important thing for our retail teams which are driving the whole business I 53:18 53 minutes, 18 seconds think there is a lot of focus on them to increase eye conversion uh I mean they if you talk to my head of business he 53:26 53 minutes, 26 seconds will talk about some 50 root cause analysis and you know there are a lot of things which which is happening as we speak we're also working through 53:35 53 minutes, 35 seconds some amount of uh activation through loyalty to ensure couple of programs are loyalty to ensure that the conversions go up. So as we speak lot of things are 53:42 53 minutes, 42 seconds happening uh Jes maybe once we meet we can take you through in detail. Yeah. 53:47 53 minutes, 47 seconds And last on the working capital cycle you already witnessed almost 150 k plus kind of improvement. So all the lowhanging fruit is over or there still 53:55 53 minutes, 55 seconds juice to improve the working capital for next year? 53:58 53 minutes, 58 seconds I think there is still some juice uh in the working capital and I mean we we we we think that another 54:07 54 minutes, 7 seconds 100 crores should definitely uh is there what we are looking at in the coming year. Okay. Thanks a lot and all the best. 54:14 54 minutes, 14 seconds Yeah. Thank you. 54:17 54 minutes, 17 seconds Thank you. A reminder to all the participants that you may please press star and one to ask questions. The next question is from the line of Sukrit D. 54:27 54 minutes, 27 seconds Patel from Eyesight French Trade Private Limited. Please go ahead. Uh good afternoon to the team. I have two questions. My first question to Mr. 54:35 54 minutes, 35 seconds Mish. Uh in your point of view, how is Shopper preparing to capture evolving demand in premium retail and omni 54:43 54 minutes, 43 seconds channel formats while carefully addressing challenges such as competition from online players and 54:50 54 minutes, 50 seconds changing consumer demands? and what strategic levers uh do you see important for differentiating the brand amongst 54:59 54 minutes, 59 seconds the peers in the coming quarters? That's my first question. I'll ask my second question after this. Thank you. 55:06 55 minutes, 6 seconds Thanks. Uh you know uh okay let me let me address. So what is the promise to the consumer? If you go to our investor 55:14 55 minutes, 14 seconds deck the promise is we aim to be the most loved premium shopping destination for aspirational young Indian families. So I think it starts always with the TG. 55:23 55 minutes, 23 seconds What is the TG? [clears throat] You look at and what you want to drive. Once once the TG is defined you we as a organization and as a team take steps 55:32 55 minutes, 32 seconds there are things which you will do things which you will not do. So in our mind uh getting that customer search online and then come to the store is 55:41 55 minutes, 41 seconds very important. The ability to show them the inventory of the store is very very important. the ability to create these 55:49 55 minutes, 49 seconds spaces in the store where you are actually cutting down on um retail areas. But you know all our stores right now 80% of our stores right now have a 55:57 55 minutes, 57 seconds kids play area. We've actually given away retail spaces and created a safe zone for families to come and leave their kids and we are quite okay even if 56:05 56 minutes, 5 seconds they're shopping in the mall but the kids are there because I think that is the kind of thing that no no one can can offer you right. So our focus is to 56:13 56 minutes, 13 seconds create premium merchandise to create great service. our personal shopper program where actually people come engage with us we provide them a I 56:23 56 minutes, 23 seconds mean our our our personal shopper business last year was 1,250 kores which is which is maybe higher than most of 56:30 56 minutes, 30 seconds the brands right so that is there then shoppers is known for authenticity then a lot of times in online what you get maybe not is not something very 56:38 56 minutes, 38 seconds authentic but whether it's the fragrances or the watches what you get from us is very very different so I think that's that's something very important having said that we understand 56:46 56 minutes, 46 seconds that we need to cater to the online customers. So that's why the investments in online have happened over the last year. We are very happy with where we are and we have started seeing the 56:55 56 minutes, 55 seconds results of that and when conversions this month onwards is very very good in online. The the I think the the other thing is there's also a demographic 57:03 57 minutes, 3 seconds change because obviously there are younger consumers coming in. So we just tied up with Hive which is uh which which which is the group which actually 57:11 57 minutes, 11 seconds created uh amazing uh bands like uh uh BTS which is a South Korean brand. So they are creating India's first uh girl band and we are the retailers for them. 57:21 57 minutes, 21 seconds In fact we will start selling uh from our stores the BTS albums also and we'll be the only retailer selling it. So I think there are multiple levels of 57:29 57 minutes, 29 seconds marketing strategy and execution which we are doing as we speak to to create differentiation. If I talk about our peers, I think there are a couple of 57:37 57 minutes, 37 seconds things we very different. A we are very very premium visav the merchandise offered by our peers and second the heavy pivoting which we have on 57:44 57 minutes, 44 seconds non-apparel that is beauty or or watches. I think we we we stand very very differently. So we have positioned ourselves India's only premium retailer 57:51 57 minutes, 51 seconds and we are building on it every single day. Thank you. My second question to Mr. 57:57 57 minutes, 57 seconds Punkage is uh as shopper stop continues to benefit from growth in fashion and lifestyle consumption, how are you 58:05 58 minutes, 5 seconds prioritizing capital allocation between store expansion, digital investments and shareholder returns and what long-term 58:14 58 minutes, 14 seconds cost efficiencies are being pursued to safeguard margins and amid rising rental and operating cost. Thank you. 58:23 58 minutes, 23 seconds See the large part of you know uh our resources will go towards our core business which is department stores. 58:30 58 minutes, 30 seconds Having said that we understand the potential of our new businesses as well which is the intune and uh you know Kabi spoke about it. We brought in tune up to 58:39 58 minutes, 39 seconds a level and right now you know our priority remains that we get the unit economics right. We correct the profitability and efficiency and then we 58:47 58 minutes, 47 seconds look at expansion uh you know our distribution business uh that also continues to grow very well. It's a very 58:54 58 minutes, 54 seconds profitable business if you if you see our results that will continue to expand as well. So uh you know our capital allocation will follow uh the 59:03 59 minutes, 3 seconds profitability path uh at the moment. Let me you know be u very clear on that. And once the profitability path is 59:12 59 minutes, 12 seconds established um resources uh are definitely not a constraint you know for for shoppers. So the expansion will then 59:20 59 minutes, 20 seconds uh continue. Uh a combination of all these you know you just asked about shareholder returns. I think a combination of all this uh definitely 59:29 59 minutes, 29 seconds leads to you know profitability turnaround which is then um you know the ultimate return for the shareholder as 59:36 59 minutes, 36 seconds well. Uh I hope I was able to address you or if you have any follow-ups I can take those. 59:43 59 minutes, 43 seconds No thank you and uh bet vish. Thank you. Thank you so much. 59:49 59 minutes, 49 seconds Thank you. The next question is from the line of Tan Shu Bans from MK Global. Please go ahead. 59:57 59 minutes, 57 seconds Yes. Uh uh thanks for the opportunity. 1:00:00 1 hour Uh sir I wanted to understand uh premium obviously uh it's it's a incremental focus for us uh so is it like uh the 1:00:10 1 hour, 10 seconds existing consumer uh that wanted premium products uh but we were lagging behind on this space or uh is it like we are 1:00:18 1 hour, 18 seconds changing the consumer profile of our business and trying to bring in a new set of premium consumers. 1:00:24 1 hour, 24 seconds Uh thanks I think it's a great I think one of the best questions asked today Dvanchu you know I will I will give you a a data point I think it's very 1:00:32 1 hour, 32 seconds interesting so we launched a brand say X in handbags so so so handbags is one category which we have chosen as a 1:00:40 1 hour, 40 seconds premiumization uh like one of the top five categories for premiumizing we launched a a brand called say X I 1:00:49 1 hour, 49 seconds don't want to name brand specifically so I'm just using X as a nominator So when we launched that brand, it became the 1:00:56 1 hour, 56 seconds number one brand for us in its first year of launch. When we looked at the data, we realized that 65% of people who 1:01:04 1 hour, 1 minute, 4 seconds bought that brand used to be a shopper stop customer but they never used to buy handbags from us. So what we realized was that and that for for us was a aha 1:01:13 1 hour, 1 minute, 13 seconds moment that actually if you are able to get the right merchandise the customers are the the customer which whom we have 1:01:20 1 hour, 1 minute, 20 seconds is whether it's a silver or a gold they are all top level customers maybe we were not keeping merchandise of the brand which they were consuming. So for 1:01:27 1 hour, 1 minute, 27 seconds example they were they might be coming to us to buy certain apparel categories but especially in uh they were not 1:01:34 1 hour, 1 minute, 34 seconds buying uh the handbags from us. So I think what we are trying to do is to actually come closer to the customer in 1:01:42 1 hour, 1 minute, 42 seconds terms of what he or she needs. We have got this very beautiful concept called voice of customer. So we actually in all our stores we have something called a uh 1:01:51 1 hour, 1 minute, 51 seconds so there's a QR code. uh you scan it and now what we are doing is if you have to launch any brand in any store we 1:01:59 1 hour, 1 minute, 59 seconds actually ask the customer do you think this brand should be launched faces that we have a word cloud and we decide whether we need to launch 1:02:06 1 hour, 2 minutes, 6 seconds a brand or not we also ask our consumers whether you want a certain brand please name it so so what what has happened now is that obviously we'll attract newer 1:02:14 1 hour, 2 minutes, 14 seconds customers but the customers who are shopping with us the 13.5 million which is our with wh to whom we owe everything 1:02:21 1 hour, 2 minutes, 21 seconds we are giving them a voice to tell what they want and we are getting those brands and what's happening is it's you know it's a like a 1:02:29 1 hour, 2 minutes, 29 seconds energy once you start doing it and the brands start seeing that we are respecting them and giving them the uh you know the ability to 1:02:36 1 hour, 2 minutes, 36 seconds display them well it's it's a it's a multiplier effect and I think that's the journey in which we are it takes I mean it it has taken us uh some time to get 1:02:45 1 hour, 2 minutes, 45 seconds this to to execute the strategy but I I guess what you are seeing now would be a multiplier effect of this going forward 1:02:52 1 hour, 2 minutes, 52 seconds Fair enough. And uh is it a fair assumption that you're gaining new consumers as well uh on the line? 1:02:59 1 hour, 2 minutes, 59 seconds No, 100%. So what we see is that 41% of the bills which we are making now uh is 1:03:07 1 hour, 3 minutes, 7 seconds through new customers right so I think that that for for for me is very very important. The fact that we are our 1:03:14 1 hour, 3 minutes, 14 seconds enrollments whether in the black card or the silver card the highest ever I think that's very very strong. repeats coming at 69% is very strong. So you you can 1:03:22 1 hour, 3 minutes, 22 seconds see that the KPIs on recruiting newer customers as your black customers or the customers coming for 1:03:29 1 hour, 3 minutes, 29 seconds the first time. I think we are seeing an uptick across all the all the KPIs. 1:03:34 1 hour, 3 minutes, 34 seconds Very nice. Uh so small followup here is from a watches category perspective we are seeing very uh I would say 1:03:42 1 hour, 3 minutes, 42 seconds exponential kind of growth trends for uh watches specific players. I'm taking examples of just in time Helios which 1:03:50 1 hour, 3 minutes, 50 seconds play in these premium to bridge to luxury watch segment. So as in what is our differentiated proposition uh that 1:03:58 1 hour, 3 minutes, 58 seconds we're bringing uh to the consumer for this particular category. 1:04:02 1 hour, 4 minutes, 2 seconds So you know I think uh the and and you actually you're answering the question in the question you're answering the your own question everybody whom you 1:04:11 1 hour, 4 minutes, 11 seconds have mentioned are actually watches customer only right what we are able to get is a customer 1:04:18 1 hour, 4 minutes, 18 seconds who can transcend across categories right so that's one big differentiator second we are right now very very strong in fashion watches 1:04:27 1 hour, 4 minutes, 27 seconds when we talk about fashion majes I mean Armani Cheruki right there are different ASP when we talk about especially ethos they are all I think it's a it works at 1:04:36 1 hour, 4 minutes, 36 seconds a different scale so our focus is around the fashion and now building on the on the on the B2 luxury segment but I think 1:04:45 1 hour, 4 minutes, 45 seconds the the biggest differentiator is the walk-ins which we have like if 5.7 or 5.2 to I think what was the exact number if those my number of k people are 1:04:54 1 hour, 4 minutes, 54 seconds walking into the stores and watches is on my ground floor along with beauty we give the customers that choice to experience the product I think that that 1:05:01 1 hour, 5 minutes, 1 second that's that's a very different experience and which is the power of a departmental store if you get your act right you will get multiple customers 1:05:08 1 hour, 5 minutes, 8 seconds traversing across categories understood so last question from my end store it's been some time since we 1:05:17 1 hour, 5 minutes, 17 seconds renovated so can you comment on trends uh in some of these renovated stores uh versus the rest of the network or uh 1:05:26 1 hour, 5 minutes, 26 seconds versus the earlier trends in these particular stores. So uh on key retail mattresses what what is the kind of improvement uh that we've seen uh post their renovation. 1:05:36 1 hour, 5 minutes, 36 seconds So we are seeing that once we renovate our marquee stores our sales productivity goes up by 35 to 40%. 1:05:44 1 hour, 5 minutes, 44 seconds 35 to 40% of yeah the sales productivity. Yeah. 1:05:49 1 hour, 5 minutes, 49 seconds Okay. So that translates into uh better margins also, right? So uh of course because of the cost to fix the right. 1:05:57 1 hour, 5 minutes, 57 seconds Oh yeah. Right. Right. 1:06:00 1 hour, 6 minutes And that's why we are very excited about renovating our five big stores this year. 1:06:06 1 hour, 6 minutes, 6 seconds And uh after these five stores, so will our network be largely uh in in in the 1:06:13 1 hour, 6 minutes, 13 seconds shape which we sort of envisage or uh there are no renovation is going to be a continuous uh continuous uh thing. 1:06:23 1 hour, 6 minutes, 23 seconds Okay. 1:06:25 1 hour, 6 minutes, 25 seconds Okay. Great sir. Uh thanks for taking my questions. Yeah. Thank you. Thank you. 1:06:30 1 hour, 6 minutes, 30 seconds Thank you. You may please press star and one to ask questions. We'll take the next question from the line of Abhijit 1:06:37 1 hour, 6 minutes, 37 seconds Kundu from Antique Stock Broking. Please go ahead. Yeah, hi. Thanks for the opportunity. 1:06:43 1 hour, 6 minutes, 43 seconds Um, [clears throat] in terms of your uh minimization initiative, um, as per my understanding for the last 20 years. I 1:06:52 1 hour, 6 minutes, 52 seconds mean, uh, shopper stop has been at the forefront of, uh, providing premium uh, you know, apples and fashion. uh when we 1:07:01 1 hour, 7 minutes, 1 second look at departmental stores anyway there there were always uh limited options in department departmental stores uh so 1:07:09 1 hour, 7 minutes, 9 seconds commendably we have done that very well we are going to the next level of having you know the luxury uh uh apples and uh 1:07:18 1 hour, 7 minutes, 18 seconds you know fashion accessories u my point is that uh you know when I look at your departmental score growth uh it's in the 1:07:27 1 hour, 7 minutes, 27 seconds region of four 5% uh your other businesses are uh the the non-core I mean the core business 1:07:34 1 hour, 7 minutes, 34 seconds department so that is growing at a 4% and within that there there is a element of you know uh the nonapperal business which is obviously growing at a higher 1:07:43 1 hour, 7 minutes, 43 seconds rate the cosmetics and the watches business uh the approach business though the uh you know there has been a good 1:07:51 1 hour, 7 minutes, 51 seconds amount of evolution uh seen particularly in the last seven eight years in terms of uh premium uh apples uh and and that 1:07:59 1 hour, 7 minutes, 59 seconds quite differentiating when we compare it with any other department. So, other departmental stores anyways are you know 1:08:06 1 hour, 8 minutes, 6 seconds not much uh not much of options. Um and when when we compare those brands uh to 1:08:13 1 hour, 8 minutes, 13 seconds the uh you know the exclusive brand outlets uh those brands are seeing a higher growth. you rightly said that you 1:08:21 1 hour, 8 minutes, 21 seconds have a you have a bigger size all that but uh why are we not able to uh you 1:08:28 1 hour, 8 minutes, 28 seconds know see more growth um I mean in the uh than the EVOs because EVOs have done uh 1:08:37 1 hour, 8 minutes, 37 seconds better uh in the last you know two years when we compare compared to the uh departmental store business or maybe the 1:08:46 1 hour, 8 minutes, 46 seconds estimated uh app store business of yours uh is it that that value uh propositions within your department of stores have 1:08:54 1 hour, 8 minutes, 54 seconds not done well only the prison apples have done well. I mean what has it what has been the scenario there because uh you know when we look at the uh uh there 1:09:03 1 hour, 9 minutes, 3 seconds have been companies who are grappling but they are seeing high singledigit to uh you know 10 to 9 10 to 15% kind of 1:09:11 1 hour, 9 minutes, 11 seconds growth now. So uh and and we need that you know 15% growth in departmental 1:09:17 1 hour, 9 minutes, 17 seconds stores uh backed by some 78% uh uh I mean same store sales growth and 78% uh 1:09:24 1 hour, 9 minutes, 24 seconds store addition right so where are we in that uh uh I mean in that overall uh circumstance so scenario that I wanted 1:09:33 1 hour, 9 minutes, 33 seconds to understand okay uh thanks Abij broadly the question is as I understand is your your or 1:09:42 1 hour, 9 minutes, 42 seconds you're you're questioning the growth which we have in our apparel business versus that of apparel of the brands in 1:09:50 1 hour, 9 minutes, 50 seconds their EVOS right that's that's what the question is right that's a fundamental part of the first question so I I I don't think so you 1:09:57 1 hour, 9 minutes, 57 seconds have you we have to look at the data in the way you have just mentioned all the brands which you speak about uh who have 1:10:05 1 hour, 10 minutes, 5 seconds done a double-digit growth actually if you ask them how how is the departmental store retail uh growth for You will find that maybe we are same or more. 1:10:15 1 hour, 10 minutes, 15 seconds When you see our profile, you will have a set of brands. So for example, we have got 40 brands of few will do grow better, few will not grow better, right? 1:10:24 1 hour, 10 minutes, 24 seconds So you look at a weighted average. But brand to brand if if you compare the performance, I think we are we are very much there. That that I know for sure 1:10:33 1 hour, 10 minutes, 33 seconds because as partners who have got deep relationships over the last 30 years or so, we we we share data very very openly, right? So I think that's one 1:10:40 1 hour, 10 minutes, 40 seconds thing obviously I can't name the brands here because it's a brand's right to mention so just to tell you one that's one second for brands itself the 1:10:48 1 hour, 10 minutes, 48 seconds departmental stores are and they continue to be one of the most profitable channels before I joined shoppers I was running brands only and 1:10:56 1 hour, 10 minutes, 56 seconds the kind of spaces which people get uh the kind of walk-ins which brands get is very difficult for them to get in their 1:11:03 1 hour, 11 minutes, 3 seconds own eos and the obviously the rental cost which we have and the margin versus what the brands pay so I don't see uh that as an issue. I think we are 1:11:12 1 hour, 11 minutes, 12 seconds comparing subset of data of high performing apparel brands and I would and I'm very sure that our performances in those would be equal or better and 1:11:19 1 hour, 11 minutes, 19 seconds and and that's for sure at least for the last two years I'm very very sure. The third thing is uh and I think you you rightly saying that we should look at a 1:11:27 1 hour, 11 minutes, 27 seconds double digit growth in departmental store which is a mixture of uh the like for like plus new stores. I think for 1:11:36 1 hour, 11 minutes, 36 seconds our business we we should we are aiming for that kind of growth this year just to just to answer that. Yeah. So uh uh 1:11:44 1 hour, 11 minutes, 44 seconds so where are we uh seeing so so my uh other question or rather the main question was where are we seeing that uh 1:11:52 1 hour, 11 minutes, 52 seconds you know lower growth I mean is it so we we see higher growth in uh we are seeing higher growth in premium brands 1:11:59 1 hour, 11 minutes, 59 seconds we see lower growth in in in the low price bands and that's what I think we said that we are churning out brands the other thing which we need to also 1:12:07 1 hour, 12 minutes, 7 seconds understand is that most of the brand contracts and brand stores are the age is 5 years hm M right most so you are comparing a 3 to 5 years 1:12:15 1 hour, 12 minutes, 15 seconds or 4 years like for like growth versus somebody like our market stores are 30 years old or 25 years. 1:12:23 1 hour, 12 minutes, 23 seconds So so you know there is a it's not it's not a comparable thing at all if if I if I if I if I look at it so there are two or three variables. So we have to look 1:12:31 1 hour, 12 minutes, 31 seconds at it more granularly to to to to create a to create a hypothesis around it. 1:12:39 1 hour, 12 minutes, 39 seconds So uh your newer stores would be uh having a higher growth trend. Uh is that conclusion right then? I mean a 3 to 5 1:12:47 1 hour, 12 minutes, 47 seconds years for obviously. Yeah. 1:12:50 1 hour, 12 minutes, 50 seconds Okay. And uh has there been any uh underlying in uh recovery in 1:12:57 1 hour, 12 minutes, 57 seconds discretionary spend seen during the quarter? uh because across the board generally uh discretionary trends I mean 1:13:05 1 hour, 13 minutes, 5 seconds the the fashion trends have been relatively uh better than what it was in the previous quarters. Have you seen something like that? 1:13:14 1 hour, 13 minutes, 14 seconds Yes. Yes. I think u in my commentary also I mentioned that the fashion uh or the overall business has seen an 1:13:21 1 hour, 13 minutes, 21 seconds improvement since February. That improvement continued in April as well. 1:13:25 1 hour, 13 minutes, 25 seconds May also has started off fine. Uh my worries are more for the Q2 and Q3 because of supply chain uh disruptions if any. 1:13:35 1 hour, 13 minutes, 35 seconds Understood. Thanks. Thanks. Yeah. Thank you. 1:13:41 1 hour, 13 minutes, 41 seconds The next question is from the line of pages Sha from Aendispak Institutional Equities. Please go ahead. 1:13:53 1 hour, 13 minutes, 53 seconds Mr. Sha, please proceed with the question. Yeah. Hi. Uh am I audible? Yes. Yes. Hi. 1:14:01 1 hour, 14 minutes, 1 second Yeah. Hi. Uh so thanks for the followup opportunity. Uh couple of questions. Uh partly academic in nature. So did I hear 1:14:09 1 hour, 14 minutes, 9 seconds you correctly? You said that uh once a store get refurbishment uh sales productivity increases by 35 to 40%. 1:14:18 1 hour, 14 minutes, 18 seconds Yes. The the the new uh I I think there are two very good examples. One is Malad and other is Ju. The moment we have done it, we have seen that kind of a thing. 1:14:28 1 hour, 14 minutes, 28 seconds In case of malard though, we also reduce the space and that also help us to grow that much of productivity. For Juu is the same store size and we are going around 35 to 40%. Yeah. 1:14:39 1 hour, 14 minutes, 39 seconds Sir, if we double click on this, what leads to this? Is it that uh customer gets excited with the new store? Because I'm assuming the catchment area the the 1:14:48 1 hour, 14 minutes, 48 seconds the customer profile remains the same, the location remains the same and I'm assuming inventory also remains the 1:14:55 1 hour, 14 minutes, 55 seconds same. the merchandise. So no, so I think uh stages the biggest change happens in merchandise. If the store obviously looks fresher and more 1:15:03 1 hour, 15 minutes, 3 seconds appealing but I think we have we have changed the way and maybe and may I invite you to visit our Joo store because I think that would give the best 1:15:11 1 hour, 15 minutes, 11 seconds uh best answer to this question because if you if you see the the kind of brands we have seen for example in Juu the 1:15:18 1 hour, 15 minutes, 18 seconds number one brand is what we never kept in our store that brand has become the number one brand and it's a very big global brand. So what I'm trying to say 1:15:26 1 hour, 15 minutes, 26 seconds is the nature of the mer merchandise itself changes the way the the pricing at which we have kept because see these 1:15:34 1 hour, 15 minutes, 34 seconds stores always had good uh you know uh consumer entry maybe we had because we 1:15:40 1 hour, 15 minutes, 40 seconds were not renovating or whatever time it took the stores became jaded and what we are seeing and experiencing is as we are 1:15:47 1 hour, 15 minutes, 47 seconds renovating the stores in case of Malad even if I take out that one floor we we would have our SPS would gone up by 15 1:15:55 1 hour, 15 minutes, 55 seconds 20% % in case of Juu completely 35% SPSF increases only bases the the newest brands which you've introduced so I 1:16:03 1 hour, 16 minutes, 3 seconds think that's a journey we realize that the customer customer has always been there with us we were just not giving them the merchandise which they deserved 1:16:11 1 hour, 16 minutes, 11 seconds and I think Juu is a big testimony for all of us and learning which we have accepted and we are working on now 1:16:19 1 hour, 16 minutes, 19 seconds what is the typical refurbishment cycle typical as in in how many years we do. Yes. Yes. 1:16:27 1 hour, 16 minutes, 27 seconds So I think 8 to 7 to 8 years is where is is what we take but after seeing the joo successes that's where we are now 1:16:35 1 hour, 16 minutes, 35 seconds focusing on our big stores uh pages that we we we see a formula which is a winning formula we now need to ex 1:16:42 1 hour, 16 minutes, 42 seconds execute it and out of that's why I'm saying we have taken five of our larger stores also the newer stores which are opening the ones which are the premium 1:16:49 1 hour, 16 minutes, 49 seconds ones we are opening in the new format only so that we don't uh we are not you know we just want to take the whole experience to the next level. 1:16:59 1 hour, 16 minutes, 59 seconds So isn't this the secret sauce there? 1:17:01 1 hour, 17 minutes, 1 second Because if I do the math over 7 years also if it it takes 40% jump it actually productivity is 5% SSG on kagger basis. 1:17:11 1 hour, 17 minutes, 11 seconds So so isn't it it seems like that it is it is like every six seven years if we do this then on on kagger basis we 1:17:20 1 hour, 17 minutes, 20 seconds actually achieve what we are trying to achieve with with so many. 1:17:24 1 hour, 17 minutes, 24 seconds Agree agree. I think uh you are right that we can uh we should renovate but I think it's not only about renovation 1:17:33 1 hour, 17 minutes, 33 seconds it's also about what brands you're getting in right so if we are able to um 1:17:40 1 hour, 17 minutes, 40 seconds get the right brands and renovate then is that number what what I what I'm mentioning 15 to 20% in case of Malar or 35% in case of Juu we have seen that 1:17:49 1 hour, 17 minutes, 49 seconds growth happening so I think that's a safe assumption and that's why the focus this year and the coming years is on renovation for mari properties as well. 1:17:59 1 hour, 17 minutes, 59 seconds Second and last again party academic you said that uh it was kind of uh discovery which we made that our customers who are 1:18:07 1 hour, 18 minutes, 7 seconds coming already are buying premium brands. Now among the uh offline retailers you have the most gated uh 1:18:16 1 hour, 18 minutes, 16 seconds most uh vintage data on your customers which you are collecting for last many years. Now ideally with the data and 1:18:24 1 hour, 18 minutes, 24 seconds with all the computing tools that we have uh shouldn't it be like much more proactive rather than reactive and why 1:18:32 1 hour, 18 minutes, 32 seconds I'm saying this that when we are competing with digital channels who are using even nudge searches to figure out that what customers are looking for and 1:18:40 1 hour, 18 minutes, 40 seconds not getting so with that kind of competition to beat uh in in the data that we have shouldn't it be much more proactive to understand our customer? 1:18:50 1 hour, 18 minutes, 50 seconds No, no, I think you misunderstood what I said. 1:18:54 1 hour, 18 minutes, 54 seconds What I said was that we introduced a new brand and we saw that we are able to attract newer customers. Right now, whether that customer in the handbag 1:19:02 1 hour, 19 minutes, 2 seconds category was buying a brand X or a Y, you no data will tell you because we are not an online site which is offering all these brands. Please understand, we have 1:19:10 1 hour, 19 minutes, 10 seconds the data for shopping within the ecosystem, right? We don't have the his shopping outside the ecosystem because even on 1:19:18 1 hour, 19 minutes, 18 seconds our.com we are only sell brands which are a part of our profile that's one once we figure that out that's why we are now using VOC which is the voice of 1:19:26 1 hour, 19 minutes, 26 seconds customer and it is actually done through AI where customer can speak in 22 languages that gets converted into wordcloud tells the name of the brand which they want in the store and we 1:19:34 1 hour, 19 minutes, 34 seconds launch it. So I think we have been very proactive in this. 1:19:38 1 hour, 19 minutes, 38 seconds Okay. So, so you have tools to kind of engage with customers to understand before. 1:19:43 1 hour, 19 minutes, 43 seconds No, just to just to give you a sense they just our loyalty program has been rated the best loyalty program and personalization program has been rated 1:19:51 1 hour, 19 minutes, 51 seconds as the best program across all the departmental stores in the world which includes Selfridges and Macy's and everybody. So I think it's a very it's a 1:19:59 1 hour, 19 minutes, 59 seconds very detailed there's lot of information as you rightly said sitting with us and we continuously keep on churning on it and we we are building the 1:20:07 1 hour, 20 minutes, 7 seconds personalization there. For example, if you come to our personal shopper, he actually has an app which will have all your history. What you have shopped last 1:20:14 1 hour, 20 minutes, 14 seconds time, what is likelihood of your buying, which brands you want to buy, which which what you have shot before and if you're shopping this brand, what are other category brands. So I think but that's all within the ecosystem. 1:20:25 1 hour, 20 minutes, 25 seconds No data allows you to check the ecosystem from outside, right? So I think that we need to be very clear on that view. 1:20:32 1 hour, 20 minutes, 32 seconds Perfect. Thanks. Thanks. That's all from Thank you. 1:20:38 1 hour, 20 minutes, 38 seconds Thank you ladies and gentlemen. That was the last question. Thank you members of the management. On behalf of Shop is Stop Limited. That concludes this conference. 1:20:48 1 hour, 20 minutes, 48 seconds We thank you for joining us and you may now disconnect your lines. Thank you.