What: Indian department store chain Shoppers Stop demonstrates resilience with substantial profit growth despite Amazon's recent exit.

Why it is important: The results showcase successful adaptation to India's evolving retail landscape, particularly in beauty retail, where the company's expansion to 334 doors demonstrates market leadership potential.

Shoppers Stop has demonstrated remarkable resilience in its third-quarter performance, posting a 41.7% increase in profit to INR 52.23 crore. This achievement is particularly noteworthy following Amazon's recent divestment of its 4% stake for INR 276 crore. The company's strategic focus on beauty retail has proven successful, with its network expanding to 334 doors and generating INR 39 crore in sales. The retailer has innovatively approached store formats, introducing large-format specialty beauty stores, such as a 9,000 sq. ft. location in Kolkata's Quest Mall, significantly larger than traditional 1,500 to 3,000 sq. ft. beauty stores. While maintaining a strong brick-and-mortar presence, Shoppers Stop is also advancing its digital transformation, aiming to increase online sales from current 7-8% to 15% through enhanced platforms like shoppersstop.com and ssbeauty.in. This balanced approach to physical and digital retail demonstrates the company's adaptability in India's dynamic retail environment.

IADS Notes: As observed in December 2024, Shoppers Stop's performance reflects a broader transformation in India's retail landscape, where domestic players are gaining prominence . The company's success in beauty retail aligns with global department store trends, as seen in June 2024 when beauty emerged as a key growth driver for the sector. This strategic focus mirrors successful international examples, such as Selfridges' 10% beauty sales growth in January 2025, demonstrating how department stores can leverage beauty categories to drive overall performance.

Shoppers Stop profit rises 41.7% in Q3 FY25