Shoppers Stop , a leading retail chain in India, is gearing up for a strong festive quarter, buoyed by recent Goods and Services Tax (GST) reforms that have reduced tax rates on apparel. The company's Managing Director, Kavindra Mishra, expressed optimism about the upcoming quarter, predicting a 'bumper Q3' and improved performance in the second half of the fiscal year.

GST Reforms Boost Consumer Demand

The recent GST reforms, which took effect on September 22, have significantly altered the tax landscape for the apparel industry. Under the new structure:

• Apparel priced between Rs 1,000 and Rs 2,500 now attracts a reduced GST rate of 5%, down from the previous 12%
• Clothing items priced below Rs 1,000 continue to be taxed at 5%

These changes are expected to stimulate consumer demand, particularly in the mid-range apparel segment.

Encouraging Store Footfalls

Mishra reported that store footfalls have shown a positive trend since the implementation of the GST changes. This uptick in customer traffic is a promising sign for the retailer as it heads into the crucial festive season.

Performance Outlook

Shoppers Stop's performance indicators and expectations include:

• A 6% like-for-like growth reported in Q1
• Anticipation of high single-digit growth in Q2
• Expectation of a strong Q3 driven by festive demand and GST benefits

Diverse Portfolio and Margin Stability

Despite the increased focus on apparel due to GST changes, Shoppers Stop maintains a balanced portfolio:

• 40% of the company's offerings are in the non-apparel category, which remains unaffected by the recent GST modifications
• Margins are expected to remain neutral, even with the projected increase in demand

Luxury Segment Growth

The luxury segment of Shoppers Stop's business has shown robust performance:

• 9% growth reported in the luxury category
• This growth indicates a continuing trend of premiumisation, contributing to the overall positive outlook

As Shoppers Stop navigates the evolving retail landscape, the combination of GST reforms, diverse product offerings, and strong luxury segment performance positions the company for potentially significant growth in the coming festive season. The retail chain's optimism reflects broader positive sentiments in the Indian retail sector as it recovers from previous challenges and adapts to new tax structures.

Shoppers Stop Limited (SSL), a prominent Indian retailer, has received an upgraded Environmental, Social, and Governance (ESG) rating, showcasing its commitment to sustainable business practices. The company's ESG performance has shown a notable improvement, as revealed in a recent assessment by SES ESG Research Private Limited.

ESG Rating Improvement

SES ESG Research Private Limited, an independent ESG rating agency, has assigned Shoppers Stop an ESG rating of 69.10 based on the company's FY 2024-25 disclosures. This marks a significant improvement from the previous rating of 68.20, which was based on FY 2023-24 data. The assessment was conducted on July 23, 2025, without any direct engagement from Shoppers Stop, emphasizing the objectivity of the evaluation.

Voluntary Assessment and Transparency

It's worth noting that Shoppers Stop did not commission this ESG assessment. SES ESG undertook the evaluation voluntarily, relying solely on publicly available information pertaining to the company's performance in FY 2024-25. This approach underscores the importance of corporate transparency and the growing interest in ESG metrics among stakeholders.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Shoppers Stop promptly disclosed this ESG rating update to the stock exchanges. The disclosure, made on July 24, 2025, adheres to the SEBI Master Circular SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, which governs such ESG-related disclosures.

Implications for Investors and Stakeholders

The improvement in Shoppers Stop's ESG rating may be of interest to investors and stakeholders who prioritize sustainability and responsible business practices. ESG ratings are increasingly being used as a metric to assess a company's long-term resilience and its ability to manage environmental, social, and governance risks.

As companies face growing pressure to demonstrate their commitment to sustainability, Shoppers Stop's improved ESG rating could potentially enhance its appeal to environmentally and socially conscious investors and customers.

While the specific factors contributing to the rating improvement were not detailed in the disclosure, the higher score suggests that Shoppers Stop has made progress in its ESG-related initiatives and disclosures over the past year.

As the retail sector continues to evolve, with increasing emphasis on sustainable practices, Shoppers Stop's improved ESG performance positions the company favorably in the changing business landscape.