Questions, please on the line of Vishal Dudwala from Trinetra Asset Managers. Please go ahead.
Hi, sir. Am I audible to you?
Yes, you are, Vishal. Please go ahead.
My first concern is given the rising contribution of private label and exclusive brands, particularly in beauty and casual wear, how are you balancing scale and margin improvement? Has your recent launch outperformed expectations in terms of GMROI or sell-through?
Vishal, your question is that, if I hear you correctly, is what is a private brand strategy? Is that what you are referring to?
Yeah, you can say that.
Yeah, okay. Vishal, I think for us as Shoppers Stop, the most important thing when we look at any part of our portfolio has two things. One is the exclusivity, which is something which is differentiated for us as a concept, as a retail concept versus our competitor, that's one. The second is the GMROI, which you called as GMROI, right? For us, it's very important that not only the private brands are able to fill the spaces which are available through the gaps of the national brands which we have, but also they help us to deliver higher margins. I think that is something which we have been working on continuously.
For example, as we spoke, we had decentralized a few of our private brands over the last 18 months, but we have seen a higher productivity because we are now focusing on a proper private brand strategy and ensuring that we are fulfilling the needs of the customers who are through our PV, right? I think that's something which we really want to work on. When we look at the business, we feel that especially in the current context, there is a lot of space for us to work and extend the Shoppers Stop Kavindra Mishra brand to the private brands in women's wear and kids' wear categories. That's something which we continuously work on and deliver. Needless to say, the private brands have to deliver on the GMROI and the profitability, which is super critical.
Okay. The second concern is on my omnichannel strategy, which omnichannel sales is growing rapidly. What steps are you taking to improve the integration of events between online and physical stores?
Okay, I think it's a fantastic question. As we speak, Vishal, we are in a process of relaunching our app, which is the... We have done the launch of the new SDB.in. This is a beauty app and it is doing well. In case of ShoppersStop.com, we are relaunching that and the transition is happening as we speak. My sense is that in the next 20 days or so, we should be live with the SDB.in. The beauty of this is not only the front end is changing. Even in the back end, we are changing our service provider and ensuring that the inventories are available and are seen across, which will actually drive the true omnichannel experience. I think in the next 20 days, we have made a lot of investments on this and in the next 20 days, we should be able to see a very powerful...
For us, within ShoppersStop.com, the true omnichannel freemium player is something which is us figuring out. I'm very happy to share that the investments are happening in the same direction. Even now, the inventories are already integrated, but we want to make it proper and better and faster and more real-time. My sense is in the next 20 days, we should be through this.
Okay. It's safe from my side as of now. I will wait for your feedback.
Thank you, Vishal.
Thank you.
Thank you. The next question is from the line of Sameer Gupta from India Infoline. Please go ahead.
Hi, good morning and thanks for taking my question. Sir, firstly, on Intune now, you have... I'm sorry, I joined a little late. This has been addressed before. Kindly pardon me. Firstly, the departmental stores underperformed at 5% and overall company at 3%. This would imply that it's a poorer performance in Intune. My calculation suggests it would be a decline. This is a map of roughly the first 25 stores with average age of less than two years and probably located in the best catchment possible. Sir, if you can just elaborate the reasons for the underperformance of these stores in Intune.
Good morning, Sameer. Great question. I will request Devang to answer that.
Good morning, Sameer. Thank you so much for the question. You are right in inferring that Intune has had a soft performance in quarter one. If I were to break down this performance, April and May started off really well, but in June, as Kavi mentioned, it has come into play also, a lot of the value fashion players started doing discounting. As a business, we took a conscious call to launch our end-of-season sale only from 1st of July. Therefore, we faced some headwinds in demand consumption dropping substantially. That played a big role in the softness of quarter one. Having said that, what doesn't come across at a macro level is there is a significant set of stores within our network which are already doing benchmark-level sales productivity when we compare it with others.
As a business, we are doing everything in our control to limit that behavior in more stores down the line. I think the outlook remains a lot more positive than what the softness of Q1 is. Also, the June impact from the quarter is something that spreads across the value fashion industry as far as I'm aware.
Thank you. Okay. When you say benchmark sales productivity, what exactly is this? Is it around INR 10,000 per square foot or INR 12,000? What is the benchmark?
It is north of 12,000, Sameer.
North of 12,000?
Yes. The significant stores within my network where already the productivity benchmarks are received are north of INR 12,000, and we idealize it to mimic that behavior in the larger network, which is the effort that's currently undergone.
Out of the 75 stores, how many stores are currently north of 12,000 for you? If you can ballpark give a number?
I don't think it's appropriate to get into specifics, but it is a significant number, as I said, to start with. That's where I feel that the number of stores is fairly significant. To get into quarter is pretty difficult.
Got it. No worries. The second question is, again, on Intune. Can you quantify the store-level liability losses in FY2025 and also the current quarter? The objective here is not to build Intune. I understand it's still a young format, but what is the margin level that most of the businesses achieved at this point?
That's a great question. In fact, if you've seen Kavindra, the 40-year-old, they indicated that the department then leveraged the liability they wanted to facilitate. In June, as I rightly said, we had losses. That was something we were budgeted at, and we were pretty good. As the interest continues in Intune with the new stores coming in last year, these drops are expected.
Can you just quantify it? Sorry, I didn't get it.
Normally we don't give the numbers in the public forum like this, but yeah, the losses have increased since last year.
Okay, the objective here is to find where exactly is the departmental store format on a gross sales margin basis?
Okay. That I can give you. On a gross sales margin basis, for the quarter, I mean, it's not the right parameter. Compared to last quarter, they've increased by 145 basis points. Even at the EBITDA level, non-GAAP, the EBITDA margins have increased by almost 180 basis points.
Okay. The margin exact number would be for this quarter? I'm assuming last quarter there were no Intune losses. Is that what you're saying?
It was very minimal because last year we had only 23 stores, but as we said, we have 65 stores. 75 stores, I'm sorry.
Got it. Got it. Basically, 180 basis points on 1% EBITDA margin. That's what I could be looking at. Around 3% EBITDA margin on a departmental store basis is what you are running at.
That's correct. Especially looking at the first quarter, because normally the first quarter is a, what do you call it, a big quarter of all the four quarters. The margin, when the sales goes up, at least percentage goes higher in Q2 and Q3.
Oh, okay. I thought Q3 would be the highest, followed by Q1 and Q2, and then Q4. You have Q3, Q2, Q1, and then Q4.
Q3 and Q2 would be normally number one and number two.
Got it. This is helpful. Thanks. Thanks a lot, sir. I'll come back in the Q4 follow-up.
Thank you.
The next question is from the line of Ankit Kedia, from Select Capital. Please go ahead.
Hi. Our first question is on customer fit calls. Now, while we have seen QTIs in departmental stores improve, how is customer fit call moving? Have you gained market share, you know, in revenue terms, or is more of a customer fit call conversion shortening much better in the quarter, leading to this single-digit SSG?
Hi, Ankit. This is Kavi. Great question. Two things. One was, if I just talk about customer entry, the like-for-like stores have seen a 2% increase in customer entry. If I talk about 5% overall growth, there is an impact from obviously the ASP and ABV, which is there. The customer entry has also grown by 2%, which I think is very, very good. As we know, there's been some amount of shift of effective season this year versus last year, so it's still very strong for us. We had a very good May and I think a very, very good June. We are seeing that the continuous traction of customer entry actually continues this month as well. If you ask me, there is a general sense of much more optimism in terms of the customers coming to our stores right now.
Obviously, as you can see, the KPIs have increased across all parameters, whether it's ATV or IPT and MEA Holdings. Operational KPIs are holding very strong. The customer entry does not want to come in as going up.
Sure. The second question is on the new store openings. Can you highlight, are we opening slightly bigger stores now as a strategy? Are we bringing in more premium models, you know, versus the previous strategy to open around 25,000 spaces stores, to make it more premium? Because, you know, clearly premiumization is working in our favor now. Has there been a little change in strategy out there for us?
Yes. I think, while we were, my sense is during the COVID and just after COVID, we were talking about smaller stores. Definitely, we are now looking at larger stores because, as we are seeing, if we are able to, if you are going to locations and if you are able to present our brands and the premiumization well, A, once you want to premiumize, you need to give space to the brands to express themselves better. B, you need to represent the full categories everywhere. I think we have actually now started looking at 35,000 sq ft- 30,000 sq ft stores. We have changed our thoughts from that to seeing 20,000 sq ft or 25,000 sq ft. I don't think, if you want to create premium experiences, you can start seeing the customer in terms of, you know, smaller aisles or smaller places for personal shopping.
In fact, if I look at my platform movements right now and the way we are converting, we want to create more experiences. We want to create bigger personal shopper launches. We want to build sixth play area in our stores. I think a lot of that growth is happening to that one. Second, I think this whole experience of, while India is premiumizing and all the big malls are premiumizing, we're also seeing that, by that logic, we become the preferred choice for our mall partners. Very happy to share. I think dumb trumps we keep on planning, we keep on announcing those. I would just like to tell you that we have become the first choice of departmental stores for most of the bigger malls or prestigious malls receiving developers. That's a clear trend we are seeing. The idea is to not open too many small, small things, do a few things that do them right.
That's it. My last question is for Intune. Devang, you did that, you know, the end-of-season issue started in July, but across the board, you know, I think across 10 days, what I saw, you're looking store-wide 10% for profit percent discount. Now, that's a very high discount for a 35% gross margin in business. When we're talking of 75- 100 new style drops, and key trend drops, from an inventory management perspective, within two years, such high discount. Where have we gone wrong? Why is the discounting so high in this day-to-day? Thank you.
Thank you, Ankit. That's a really interesting question. First of all, the strategic direction behind offering a 40% off on the entire store is to front-end the sales discount of the month, sales share of the month in the first 10 days. If you were to walk into an Intune store today, you will probably find more than half of the consumption happening from new lines, which are selling at full price. When you balance out the full month, actually, the discount outlay is lesser than what we started off with. Secondly, a lot of the value fashion players in the market do a flat sizing. When you back-calculate the flat sizing effect, it possibly goes north of 40%.
We stuck to a cleaner conversation with the customers so that the customers know exactly what they are getting into, rather than having a complicated hybrid discount model, which is not fair to the customers. I don't think we are doing a higher discount than what we have done in the past or what others are doing, point number one. Point number two, in terms of margin delivery, we've become better than what we were before. Discount remaining where it is, is also being funded by a conscious increase in intake margin. Therefore, the overall margin delivery is not suffering on account of any end-of-season sales strategy. That's the second point.
The last point is, the ability to launch new lines on a weekly basis, even during the end-of-season sales month, as we see we've launched 200 CME new lines of automobile already, is also coupled with the confidence that end-of-season sales' aggression will help us do that. All of this is a very well thought-out strategy, which is not hurting our margin delivery in any way. I hope it addresses to a certain extent what you're asking.
That's helpful. Just to follow up on that, on our strategy extensions, the market leader is today double-downing on how we are structuring in retails. What's our take on these categories and where you see Intune, your strong point, which category do you see in which you just see your route and scale up significantly?
Thank you, Ankit. Two years, three years is a very long time frame. Having said that, I think we are very keenly observing where the value fashion market is moving. Internally, we are aligned that in the midterm, new category introductions pretty much on the lines of what we were saying is the direction. It is exactly the basis with which we used in centralized this season, and we saw a very good early success in that. We are, and we continue to be, an apparel-centric player for now, trying to get our dominance established in the apparel categories. Within apparel, the family orientation is what we've been calling out from day one, and that is what has really worked for us. We will continue doubling down on that. Yes, in the long term, it's a new category introduction, but in the short term, being to our sense is what our approach is going to be.
Thank you. Thanks and all the best, Devang.
Thank you. The next question is from the line of Gigneesh Kumari from Nippon Mutual Fund. Please go ahead.
Yes, from the Intune. What are the ROC for the quarter? After the QTI, how is the inventory turnover for the quarter? One comment on that.
Gigneesh, can you speak a bit louder? We can't hear you.
Yeah. Just want to know the ROC for the Intune. As you say, it was about frequency of the quarter because of the early discount by the floor. We just want to know the increase for the QTI. On the QTI, how was the inventory turn and the full price sales growth? Some comment on that.
On the same-store sales growth, Gigneesh, I just said, as a response to the first question, that it has been stopped, and it was correctly inferred also. That is there. I don't think we will be able to give vertical-specific growth, but it has been so. As far as inventory turns are concerned, without getting into specifics, we've improved dramatically as far as inventory turns are concerned. That is what has, in effect, given us the confidence of not pre-turning our end-of-season sales this time. Unlike a lot of other players, we started on July 1. I think on inventory efficiency, we are in the right direction and we are happy with the progress we are making.
How do you see that extending the full price sales growth?
Full price sales growth also. Thank you for pointing out. Full price sales growth also is significantly improving season on season. As we speak right now, we are very close to what a major brand would be in terms of full price sales growth, and it's comfortably north of 50%, right? It's ahead of what we've internally set as a target for ourselves. I think this and a lot of other product metrics, we are quite comfortable with the direction that we are taking.
The second question on the routine, we chose to support store on the base of 82. Roughly 5% of 10 times what we're taking in one quarter. I just want to know the currency and the situation. There was no new store opening in the QTI also. Even while we are going slow on the store opening in the QTI...
I have the case. This is Kavi here.
Go ahead.
This is beauty. I don't think we are going slow on the expansion. It's also a function of what kind of brand needs, what kind of cases. While we opened the stores in the quarter before, I think as we go into the next quarter, we should be seeing a set of stores coming in. Also, what we are doing is as a strategy, we are shifting to malls and doing fewer standalone doors. The doors we're talking about, which have been set up, are primarily the standalone doors which we have set. In certain cases, we are also combining the standalone doors with SSBT concepts. We'll share the beauty expansion plan with you when it covers.
Sure.
I would, as I'm just trying to give you the sense that there is no slowing down in beauty. In fact, beauty and Intune continue to be the growth engines for us, and we continue to invest in them. Yeah.
Yeah. Yeah, continue.
Also, what we are doing is we are looking at increasing the SISs and especially the MAC SRPs in our departmental stores because that's another big project we are working on right now. I think the focus on growth momentum in beauty continues.
Are we done with the closure of the MegaStreet GP store, or will we need a closure in the coming quarter also?
I think we are.
There will be one or two stores continuously situated.
That's good. It all depends on how the mall performs and how they should follow the mall's performance. It's dynamic. If the stores are not profitable, we will evaluate either the profitability, and then if we have to close the store, we have to close the store.
Understood.
Sure, thanks a lot.
Thank you. The next question is from the line of Devanshi Pimpin from MK Global. Please go ahead.
Thanks, Kavi. Thanks for taking my question. Sir, I just wanted to better understand your comment around the customer level growth, right? When I'm seeing your numbers, LSR is about 3%, and within that, the bill size has increased by about 6%. The bill size has actually declined. I just wanted to check, as in, when do we expect bill size to sort of start seeing growth? This reliable growth of about 6% that has happened, how long do we expect this to continue.
Thanks, Devanshi. Actually, the like-for-like growth for our departmental stores and the customer entry I was referring to was with respect to departmental stores. The like-for-like for departmental stores, we have 5%.
Mm-hmm.
This is driven by three parameters. One is the customer entry. Second is the conversion which we are doing in the store. Third is around the items per transaction and the increase in AFP. I think it's driven by these three or four elements. You would also say.
Within this 5%, that 6% holds for departmental stores as well, or is that?
Yes. When I was talking about the customer entry and I was talking about the LTLs, I was referring to only departmental stores here.
Okay. Still, on that number also, on 5% also, there's a bit of a drop, right, from the Lukas perspective.
That's because we have closed 10 stores. This is last year, Devanshi. On an absolute number, this is not comparable. We almost closed 10 stores last year. Just to reiterate Kavi's statement, on a like-for-like basis, our customer entry grew by 2%. Overall sales grew by 5% on a like-for-like level, and the total grew by 6% on the departmental level.
I'm sorry. Take it offline. Our second question is from, you mentioned a few categories like watches, apparels, products doing pretty well for you. Vichar, I wanted to check on some of the larger categories that are languishing in terms of growth. Can you help us understand here?
Okay. Actually, I think Devanshi, the quarter has been a good quarter driven by all the big categories doing well. I mean, the one category which is a standout category which didn't do that well for us was the travel and luggage, which had a close to around a 30 %- 40% regroup. Otherwise, if I look at all of the categories, all the big ones, all the big categories, they have done really well. I think the reason why that is happening is that not only are we trying to get exclusive brands, but there's also a brand storm which we are doing in Devanshi, which is helping us to provide that specific customer experience.
Understood. Lastly, I wanted to understand the challenges around value retail space, right? Is this that the competition has sort of expanded very aggressively and now they're facing issues around the entry reputation, etc.? Or was this more kind of a one-time thing that happened with higher discounts during June and now things have stabilized for competition as well? I wanted your thoughts on that.
I will just put the broader perspective and then I will request Devang to add on this. We believe that this particular segment has got a great role to play, because what it does is it makes people migrate from unorganized to organized. We continuously see an opportunity in this. If I talk about the competition, as everybody expands, I'm sure they are working on the supply chain merchandise as the way we are doing. There will always be some learnings, some lines which are not doing well. I think it's a part and parcel of a business that we've established over a period of time. I would request Devang to talk about Intune and what he thinks about it.
I think the market context and value pricing remains the low end, and the same optimism continues for Intune also. I think we have a clear understanding on why the quarter was soft, and we have a clear idea of how that will not repeat itself. I think there is no dilution on the optimism at all.
Thank you.
Thank you. That's it from my side for taking the question.
Thank you. The next question is from the line of Soshi Pontocchi from IIFL Securities. Please go ahead.
Hi, sir. I just had one question on the Shoppers Stop departmental store where there's been a very good SSG of around 5%. I just wanted to understand whether the main reason behind this recovery is something to do with the overall general demand environment or the macros or the customer behavior in general seeing an improvement, or whether it is mainly because of some efforts that you have put in. If it is the latter, can you mention a couple of those efforts which you think are particularly responsible for this turnaround? If it's just a macro thing, I mean, plugging that also is of value so that we get a read across for the other stocks in the industry. Thank you.
As per se, I mean, you know, for us to do well in the markets, we always have to have the support of the way the trends are, right? The macro trends are. I would just like to mention with all humility and humbleness representing my team that I think there are a lot of things which we have done to drive disproportionate growth vis-à-vis our competition. A lot of things which we are doing are building on. Especially what you've been hearing me speak about Shoppers Stop and the role it plays in the context. I've always said that the departmental store is a great story for this country because we are able to think and create a lot of experiences and brands for the consumers, which not everybody, not every other format can.
I think our whole campaigns around building the brand love around IPs in the West India and West East Shoppers Stop or the travel IP I spoke about or Gifts of Love is actually helping us get newer customers coming in. The very fact that last quarter we have had our first ever Black Card enrollments or people renewing their this thing or the Silver Card means that there's something which we are doing right in terms of not only getting the best brands, but telling people that, you know, these are the kind of brands. I think two things. The markets are definitely better. I see that optimism in the coming months as well.
I also feel that we have been able, through our experiences and premiumization and the journey which we have which we are on, I think we will always tend to get a higher share of market growth.
That's very helpful, sir. If you can just allude to a couple of specific initiatives which you think, and you've done a lot of things, but if you could just highlight a couple of initiatives which you think have a slightly disproportionate impact on the performance that you've seen.
Sure. I think, if I talk about the IPs which we have done to India and West East Shoppers Stop, this is a campaign which we did in April, May. We had a business of around INR 154 crore from that, and a lot of that business came through customers who came into Shoppers Stop for the first time. I think that was very, very big. We spoke about Gifts of Love, which had an additional business of around INR 40 crore in, I think, 40-odd days, which I again spoke about. Also, a lot of investment. That is from that customer entry price point of view, which is leading to revenue. In terms of the categories, I think there was a lot of play on the new brand launches and all, which has helped us.
Lastly, when we speak about experience, it cannot be completed without talking about the personal shoppers. The personal shopper contribution actually has grown by 700 basis points over last year's same quarter. If I look at all the seeking, getting more customers, giving them a set of brands which are completely new, and then promising them rent has helped us to deliver these kinds of things.
Right. Just a follow-up on this, these Black Card customers that you have, can you give us a flavor of what is the customer profile here in terms of, let's say, age, gender, or any other parameter? What's the typical customer here?
See, our typical customer is a young family, okay? Around 30 years of age, if I may say, married with a kid. That's a typical flavor of a customer we have. They normally tend to visit us seven times a year, and right now, as we speak, they contribute to around 19% of our overall business profit.
Got it. Very helpful. Thank you and all the best.
Thank you.
Thank you. The next question is from the line of Hikendra Peban from Maxwell Capital. Please go ahead.
Hello, sir. Thanks for the opportunity. My first question is, with regard to the comments made earlier on the private brand strategy, is it a question that, you know, you're not looking to expand the private brands across your Intune stores and limit it to just the departmental stores?
Hi, Hikendra. This is Kavi here. The private brands actually are for the departmental store. Intune, by nature, is a brand on its own. It's 100% we sell only Intune products in Intune stores. When we are talking about the departmental stores and the private brands in departmental stores, we're talking about brands which are a completely different nature, different price point, different customer experiences and expectations. They will always be a part of Shoppers Stop and not come to Intune.
Understood. The second is, there was a comment made earlier that, for the departmental stores, their margin was around 3%. Is it fair? Is it still in the EBITDA, or is it on the, you know, qualitative growth margin for the departmental stores, or you're more focused on the departmental stores?
Yeah. The EBITDA margin at the overall departmental level, when we say departmental, it's fully built in, is close to the numbers of what we have said, Hikendra.
Okay, sir. That's all.
Thank you. The next question is from the line of Varun Singh from AAA PMS. Please go ahead.
Are we audible?
Yeah, you're audible, Varun. Go ahead.
Thank you for the opportunity. I think, good performance for the departmental store business. I just had one question on the Intune business. When I look at the repeat customer rate at 30%, how would you look at this number with regards to what could be an ideal number maybe for the formats where we exist, given that for the departmental stores, this number is quite heavy, at 67%. Compared to your peers, compared to your last Q3, how the number has stacked up. What's your fair assessment and how could we look at it? That's my only question, sir.
Thank you for the question, Varun. Given that the set of stores that we are talking about are in its second full year of operation, 32 out of 100 shoppers having purchased with us before is a number we are very proud of. I think it's a number that gives us a lot of comfort that the core offering of the business is accepted by the customers. I'm sure that number is going to go up from here, given that the brand is in a novelty stage.
Sir, my question was, you know, how do you think that this number could be improved? What is the industry benchmark that we are looking up to? Anything with regards to that strategy and the works, etc.? I mean, any objective number would be helpful.
Okay. I don't know what an objective number as an industry benchmark would be, to be honest. All our efforts in service and product are aimed at getting the repeat customers to keep coming back to us. I think 9 out of 10 initiatives are dealing towards that. I don't have.
Okay, sure. I'm okay from my side. Sure, thank you.
The next question is from the line of Shalini Gupta from East India Securities. Please go ahead.
Yes, sir. I just wanted to understand what is the SSG for the business as a whole for the quarter?
The SSG for the business as a whole is 3% for me.
What was it in the previous year?
Previous year was negative.
Negative. Okay. Sir, you've outlined many of the steps that you've taken, which would have helped you to move from negative to 3%. My second question is, what is the, if you've spoken about it, what are your expansion plans going forward and the number of stores that you want to add.
Shalini, Karuna here. Kavi spoke about, we are, see, there are three formats we have on the departmental store. We are planning to open between seven and eight stores. In fact, Kavi also spoke about what would be the area. On the Intune, we would open anywhere between 30 - 40 stores. We have already opened four. We should open seven to eight stores this quarter, and the balance should be for the next two quarters. Beauty, there are two to three stores we should be able to open this year. We are actively exploring. If there's a good pace and a good store available, we are very keen on investing on that.
Okay, okay, sir. Thank you.
Thank you. The next question is from the line of Jayavakar. I'm an individual investor. Please go ahead.
Good morning, Jay. Am I audible?
Yeah, you're audible.
Jay, you're audible.
Go ahead.
Sir, as a recent investor acquiring of you, I have been participating in this conference since June 2024. That June 24th to June 25th, five quarters you have reported. Out of five, only one quarter you have reported positive report. That is bottom line. Whereas your top line has been remaining consistent and almost flat, ± 6%. At the retail point of view, you have been reporting negative profits, almost four quarters. Is the board thinking any first ideas, first strategies to improve these top-line growths for 20 %- 23% year -over -year? Is there anything in the discussion? You keep on saying that the same strategies. Your beauty segment has been growing consistently, but the fashion segment has been stagnated. You are reporting this top-line growth only because of the growth in the beauty segment. Is this? I want the management commentary on the first ideas, anything to improve the top-line growth?
That's for our clients, Kavi Karuna. Kavi spoke in detail. The departmental format has almost 50% apparel and 40% non-apparel. For the last history, there is the quarter which we'll address just now. The overall departmental store, the NFL is used by 5%. Overall, we have increased by 6%. There is a growth of higher than 6%. Last year, when we were talking about, yes, we had a number of backsides. For example, in quarter one and quarter two, we had election sales to other backsides. That's the reason we could not go last year Q1 and Q2. Q3 and Q4 were quite good. In fact, Q3, as you said, the market was also positive. Even this year, if you see, this quarter is Q2 PV overall indicator numbers. The overall indicator numbers are increasing by 68% on the non-GAAP basis.
The profit reports compared to last year, they have come down. The losses have come down significantly. We are looking towards this. The overall economy was weaker last year. That's the reason the growth wasn't higher last year.
Okay. If I'm trying to, I wish after you have to fill in my story as a retail investor, what you are looking at the company at the whole risk to improve the top-line growth as unless the net profit plus whatever your sales reporting reflect in the share price is almost 50% down from the peak. That shows the exact picture. I wish the board thinks something out of the box to improve the next two quarters because it is going to be a festival and other factors will improve the sales, I wish.
Thank you for that. We are reasonably confident for the next two quarters to be outliers for Shoppers Stop also.
Thank you.
Thank you. Participants, if you wish to ask a question, you may press star and one. The next question is from the line of Gigneesh Kumari from Nippon Mutual Fund. Please go ahead.
Hi. Just on the personal support, you mentioned that speaking to the official and other growth points this year, it is best to aim the personal support increases over revenue for customers, but it will be dilution on the gross margin growth because I believe the personal support is a partition kind of care that you want during the adult period. At higher risk for the you can create one-time income on the personal support annual fees. I think it is 2 %- 3% over gross margin on.
Personal support for our employees is other than the normal incentive, which is very insignificant. That is based on the receiving budgeted pay. We don't give any cashback or any amount to personal support. All I can tell you, their sales are highly profitable with a very high transaction value of almost 2x. The transactions are highly profitable, 3x and more.
There is a difference. I think that by the end of premium member, there's a 5% case rate, which was not there with the normal regular customer, even during 12th round. On April 2nd, there's a 5% lower gross margin to personalize.
No, we don't give 5% cashback to any customer. There is only a co-branded daily store with only the total cost in bondage in that. Being an SOR supplier, even if there are any discounts on the product, the discounts are also bondage suppliers.
I'm not asking about the Black Card. It's about your big-time membership card where there is a 5% case rate. Since the revenue is increasing from your membership card, I think.
Giving points.
Your rewards.
Please understand the Black Card customers give almost 2x of the business. Their overall transaction value is also higher. At the aggregate level, Black Card customers are highly profitable.
I understand from the revenue part, but from both parties' point, what I will do, right? Because of the highest throughput, you get adjusted on the other overhead, right?
Yeah, that's right.
The bonus points don't impact the gross margin. It's being used in the marketing excuse.
Yeah.
There will be an additional cost for the Black Card customers on the sales. It's something similar to a customer acquisition cost.
Understood.
Okay.
Thanks.
Thank you. Ladies and gentlemen, that was the last question for today's conference call. With that, we conclude today's conference call on behalf of Shoppers Stop Limited. That concludes this conference. Thank you for joining us. I'm Emanuel. Disconnect your lines. Thank you.
Thank you.
Thank you.