Shoppers Stop Expects 'Bumper' Festive Quarter On Strong Demand From GST Reforms

Shoppers Stop Ltd. has witnessed a strong demand pickup heading into the festive season, with its chief executive expecting demand to accelerate further on account of the GST reforms that lowered prices of several apparel categories.

Kavindra Mishra, Managing Director and CEO at Shoppers Stop, told NDTV Profit that he is expecting a bumper Q3 and a better second half of FY26.

“Following the GST reforms, the markets have been quite good, as we witnessed encouraging footfalls in stores. The demand has been quite good, so we feel we should have a bumper Q3 and a brilliant H2FY26 going forward,” he said.

The government's GST reforms, which took took effect on Sept 22., reduced tax burdens on a whole series of goods, including daily consumer products and even automobiles.

Apparels were also a part of the sweeping GST reforms, with rates for apparels priced between Rs 1,000 and Rs 2,500 reduced from 12% to 5%. The GST rate on apparel priced below Rs 1,000 remains unchanged at 5%.

Mishra said growth momentum is already visible, stating, "Like-for-like growth was around 6% in Q1. We should be high single digits in Q2 and move on from there."

Talking about margins, Mishra said the trajectory of margins will remain neutral, but the company is betting big on higher demand.

“Forty percent of our portfolio is non-apparel, which means it is not impacted by GST changes. From the remaining 60% apparel part of it, about 15% of which is below Rs 1,000, which do not get impacted by GST reforms. On a net basis, I expected margins to remain neutral, but the demand will pick up," he said.

The Shoppers Stop MD & CEO also pointed to premiumisation as a growing trend, admitting that it has played a key role in driving growth.

“We have been witnessing a shift to premiumisation. When I say 6% like-for-like growth for Q1, our growth in the luxury segment is actually 9%, which is driving the numbers forward. Premiumisation is a big trend, and we continue to remain strong in that," he concluded.