Target: ₹595
Current Market Price (CMP): ₹401.20
Shoppers Stop (SS) reiterated its commitment to the core pillars of Shopper Stop 2.0 during its recent analyst day, focusing on premiumisation, enhancing the in-store experience, and bolstering its loyalty programs.
These strategies have contributed to notable growth in the second quarter of FY26, marking a strong performance not seen in a long time. The positive momentum is expected to continue through October and November, driven by heightened festive and wedding-related demand.
Management acknowledged the need for earlier strategic shifts, admitting that the retail side had historically underperformed. However, with customers increasingly moving up the value chain—an area where Shoppers Stop had previously fallen behind—the company anticipates significant improvement in returns over the next three to five years.
With plans for expansion and a renewed emphasis on premium offerings and customer experience, Shoppers Stop aims to strategically reposition itself for sustainable, high-quality growth in the long term.
The recent decline in stock price presents a margin of safety, prompting an upgrade of the stock to ‘Buy’ from ‘Hold’, with the price target remaining at ₹595.
Key risks associated with this outlook include possible delays in store rollouts due to challenges with developers and capital constraints, increased competition, and rising lease rental costs.
Published on December 8, 2025
