(Reuters) -Indian departmental store chain Shoppers Stop reported a narrower first quarter loss on Thursday, as its richer customers splurged on luxury watches, perfumes and fancy apparel.
The affluent in India have kept on spending on premium products, despite the high cost of living in cities straining the budgets of middle class consumers.
Demand for high-end products has driven sales growth for retailers such as Nykaa and footwear seller Metro Brands.
“In a crowded marketplace, premiumisation allows retailers to stand out,” Shoppers Stop CEO Kavindra Mishra said.
Shoppers Stop, which retails luxury brands such as Armani Beauty and Michael Kors, said its watches and apparels categories grew the most during the quarter, at 19% and 9% respectively.
The company reported a net loss of 157.4 million rupees ($1.83 million) in the quarter ended June, compared with a loss of 227.2 million rupees a year ago.
Its revenue from operations for the quarter grew 8.6% and like-for-like sales rose 5%, the company said.
Average selling price at Shoppers Stop’s stores, excluding sales online and at its affordable retail unit INTUNE, rose 3% year-on-year to 1,740 rupees in the first quarter.
Premium offerings made up 67% of the company’s revenue, up 8 percentage points year-on-year.
Shoppers Stop expects the share of its premium segment to rise to 70% of revenue by the end of fiscal 2026.
($1 = 86.0690 Indian rupees)
(Reporting by Ananta Agarwal in Bengaluru; Editing by Sahal Muhammed)
