Shoppers Stop, a popular retail chain in India, is reaping the rewards of its digital transformation initiatives, with particular emphasis on the deployment of Jarvis, an innovative AI and ML-based Internet tool.
This tool is proving instrumental in providing valuable insights into consumer behaviors, enabling Shoppers Stop to make informed business decisions. Shoppers Stop reported sales of INR 1,271 crore in Q2 FY 2024 with flat growth. Gross margin of Shoppers Stop fell 30 bps. It achieved an EBITDA of INR 41 crore against INR 75 crore last year during the same period.
Digital transformation is a top investment priority for Sandeep Jabbal, Chief Information Officer (CIO) of Shoppers Stop. Shoppers Stop does not reveal the size of its IT spending. But the one-stop destination for fashion and beauty products is benefitting from its investment in technology.
Jarvis, designed to analyze customer preferences, is playing a crucial role in Shoppers Stop’s marketing strategies. By selectively targeting customers based on store and brand preferences, Jarvis is enhancing the shopping experience. Its predictive capabilities are also contributing to inventory optimization at the store level, a significant factor in operational efficiency.
During Q2 FY24, Shoppers Stop reported 9 percent increase in operating costs, attributed to strategic investments in people and technology. Kavindra Mishra, CEO of Shoppers Stop, highlighted the impact of Jarvis and other analytical tools on understanding customer sales strength, emphasizing the ongoing commitment to innovation and technological advancements.
Jarvis, gaining recognition for its excellence, clinched the Best Team in the World of Departmental Stores award at the International Global Department Store Summit (IGDS) held in Dubai.
In the realm of social media, Shoppers Stop launched SS Beauty on Instagram, garnering an impressive following of 52,000. The retailer ventured into influencer marketing with new digital campaigns. Notably, Shoppers Stop executed its first-ever digital marketing campaign on Google to drive traffic and store visits for SS Beauty outlets.
Shoppers Stop expanded its product offerings with the introduction of 13 beauty brands and 200 Stock Keeping Units (SKUs) in the private brand category Arcelia. With this addition, the retailer now boasts 700 SKUs in its private brand beauty lineup.
Efficiency gains in procurement are anticipated through enhanced processes and planning. Shoppers Stop maintains a vigilant team to stay abreast of new technologies, leveraging them through pilot programs.
Shoppers Stop’s commitment to inventory optimization is evident through its sophisticated automated replenishment mechanism and streamlined supply chain efficiencies. The retailer is poised to receive more sales data, further facilitating inventory optimization at the store level.
The loyalty program has long been a hallmark of Shoppers Stop’s success. Loyalty contributions reached an impressive 77 percent during the quarter, with a 3 percent growth in member shops. Repeat Loyal to the Last (LTL) members, especially those in the Black and Platinum categories, experienced substantial growth.
Shoppers Stop CEO is unwavering in its belief that personalization is integral to customer satisfaction. Personalized campaigns yielded a response rate 2.3 times higher than non-personalized efforts.
Looking ahead, Shoppers Stop has ambitious expansion plans for the fiscal year, intending to open 15 to 17 departmental stores, over 60 Intune stores, and more than 25 beauty stores annually for the next two years. This strategic investment aligns with Shoppers Stop’s dedication to growth and innovation, ensuring its continued prominence in the retail landscape.