Shoppers Stop Limited (SHOPERSTOP) Q4 FY23 Earnings Concall Transcript

Shoppers Stop Limited (NSE:SHOPERSTOP) Q4 FY23 Earnings Concall dated Apr. 27, 2023.

Corporate Participants:

Mamta Samat — Perfect Relations

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

Karunakaran Mohanasundaram — Customer Care Associate, Chief Financial Officer

Unidentified Speaker —

Analysts:

Varun Singh — ICICI Securities — Analyst

Pankaj Tibrewal — Kotak Mutual Fund — Analyst

Resham Jain — DSP Asset Manager — Analyst

Ankit Kedia — Phillip Capital — Analyst

Gaurav Jogani — Axis Capital — Analyst

Nihal Mahajan — Nuama — Analyst

Aliasgar Shakir — Motilal Oswal — Analyst

Sameer Gupta — India Infoline — Analyst

Unidentified Participant — — Analyst

Devanshu Bansal — Emkay Global Financial Services Limited — Analyst

Shrey — Swan Investments — Analyst

Jignesh Kamani — GMO — Analyst

Disha Ship — Annual Share and Stock Broking Private Limited — Analyst

Tejas Shah — Avendor Spa — Analyst

Yash Bajaj — Lucky Investment Managers — Analyst

Padmini Dhruvaraj — Informist — Analyst

Akshay Krishnan — ICICI Securities — Analyst

Presentation:

Operator

Ladies and gentlemen, good day, and welcome to the Shopper Stop Limited Q4 FY ’23 Earnings Conference Call. [Operator Instructions]

I now hand the conference over to Ms. Mamta Samat from Perfect Relations Private Limited. Thank you, and over to you.

Mamta Samat — Perfect Relations

Thank you, Rohan. Good morning, and thank you for joining us on the Shopper Stop Q4 FY ’23 Earnings Conference Call. Today, we have with us the senior management represented by Mr. Venu Nair, Customer Care Associate, Managing Director, and Chief Executive Officer; Mr. Karunakaran Mohanasundaram, Customer Care Associate, Chief Financial Officer; and Mr. J. Prakash Maheshwari, Customer the Associate Vice President, Finance and Accounts.

We will begin the call with the opening remarks from the management, after which we will have the forum open for the interactive Q&A session. I must remind you that the discussion in today’s earnings call may include certain forward-looking statements and must be viewed, therefore, in conjunction with the risks that the company faces. Please restrict your questions for the quarter and yearly performance and two strategic questions only. Housekeeping questions can be dealt with separately with the IR team.

I would now request Mr. Venu Nair for the opening remarks. Thank you, and over to you, sir.

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

Thank you, Manta and Rohan. Good morning, friends. Thanks for joining us today to discuss our financial results for the fourth quarter of FY ’23. Along with me, I have Karuna, our CFO; and Jeff Prakash, our FP&A lead. It may sound as a key shape, but we have achieved our highest quarterly sales for eight consecutive periods now.

Our other KPIs such as gross margin, EBITDA, and PBT have significantly improved versus last year. Our Q4 and full year results, investor deck, and press release have been shared on our website and the stock exchanges. I’m sure you would have read this. Let me now talk about the Q4 performance and the way ahead. I will also brief on the full year numbers as we go along.

In these slightly muted times, we have been growing and achieved our higher sales for the quarter. As I had said in my last quarterly speech, we witnessed moderation post the value, December and January were better. The Indian economy is showing signs of resilience while the global uncertainty remains. Geographically, all the leading indicators are pointing towards sustained momentum in economic activity in the country.

However, higher inflation in advanced economies and tightening financial conditions in India has had some impact on demand, particularly in Tier two and Tier three cities. Last year, during these times, we were witnessing pent-up demand in March and April, and that has been considerably moderated this year. This has impacted our sales in February and March. However, we have seen green shoots in April, and I will speak about that in the way forward.

With that background, we had robust sales growth of 32%. Our gross margin improved by 120 basis points, and we posted EBITDA of INR55 crores against a loss of INR13 crores for the similar period last year. Our EBITDA also included other income, which has been marginally higher against last year. This is due to the increase in the income from our loyalty program and the income we received from banks and vendors landing sharing of our physical set. Income from our loyalty members in the highest in the history of the company in this quarter.

Elaborating on the other — our average transaction value or ATV grew by 6% versus last year due to the mix of our customers purchasing bridge-to-luxury products. I must flag that this is now the 12th quarter of consecutive growth in our ATV year-on-year. Our ASP grew by 7% and the ASP growth is driven by product mix and not just price. We are conscious of premiumization, which is in line with our strategy.

Our items per bill versus FY ’22 remain flat. Just to remind you, March ’22 did have pent-up sales post COVID. And our overall count of bills increased by 27% versus last year. These significant improvements in KPIs indicate the strong undercurrent of the business and our ability to deliver result for nine consecutive quarters now. Let me share some details on the operational costs. On a like-for-like basis, our costs have increased by 13%.

The biggest increase is from investments in marketing, which grew by 41%, both online and off-line. On an organic basis, in addition to marketing, other costs such as rent, electricity has increased due to the opening of newer stores in Q3 and Q4. These are the investments that we make to deliver a sustained growth. Having said this, we have been extremely prudent on the discretionary spend, and we did not spend unless there is a marked return. With the strong sales and tight control on cost during the quarter, we reported an EBITDA of INR55 crores, as mentioned before. On GAAP financials, our EBITDA grew by 86%.

During the quarter, we opened two new departmental stores and one beauty store. As always, due to regulatory approvals, opening of stores has got delayed, and we have now opened one in the month of April, and we will have a second one in the first week of May. For the full year, we reported revenue of INR566 crores an increase of 63% over last year. Our private brand reported sales of INR723 crores, an increase of 70% and beauty, an increase of 54%.

For the full year, we reported EBITDA of INR324 crores at PBT of INR178 crores and a profit after tax of INR121 crores. I’m happy to say that these are the highest numbers on all the parameters in the history of Shopper Stop. From operations, I will now move on to the performance of each of our strategic pillars. The first strategic pillar of first citizen. It would be fair to say that the success of Shopper Stop has always been scripted by our first citizen loyal customers.

It’s no different this time, too. The demand for personalized retail experiences is growing. Our customers now expect fashion and beauty retail businesses to accommodate their preferences with brands turning to technology to reshape their customer experience. At Shopper Stop, we have been dialing up the personal experiences and personalization. We have always been a pioneer in offering innovative experiences and personalization.

Due to the sustained and vertical engagements with our customers, our IT contribution has been sustained at 75% and above. For the fourth quarter, our loyal numbers contributed to 78% of our total business for specifically on our first citizen black card, our average bill value has doubled as on the normal customers and that the total shopping is three times that of a normal member. Our base increase on black card has been consistently in double digits, and that’s the same this quarter as well. Shopper Stop has believed in creating value for our customers.

A calendar of customer engagement activities on our first citizen black card members, which included adventure and sports like golfing Sundays, tailing Sundays, octal mixing, farm-to-fork experience, great stop, wine carnival, and shopping extravaganzas that exclusive shopping hours for [Indecipherable] have all been special occasions created for our black card customer. We have apart from the black card and the growth in our black card customers, the other segment that we specifically targeted in the last quarter was inactive customers or inactive loyal members who haven’t visited us for a while.

I’m delighted to say that we had a 30% redemption on the inactive member base of over 300,000 customers that we had targeted, and this increased the revenue by 3% for the quarter. Moving on to the second strategic pillar of private brands. Our private brands grew by 35% during the quarter. We achieved INR158 crores in the revenue for the quarter and INR723 crores for the full year. This is the highest annual sales that we have achieved in the history of Shoppers Stop.

For year-to-date grew by 70% on private brands. And we’ve had a growth of circa 30% in all the four quarters during the year. Our private brand share has been 13.5% for the quarter, an increase of 30 basis points versus FY ’22. And for the full year, it is 14.3%, an increase of 60 basis points. On share of barrels for the quarter, it is at 20%, and for the year — full year, it is slightly higher at 20.3%.

During the quarter, we launched a new private brand called NEW RU, a brand focused on the plus side, and this has been received extremely well, and we have now after the initial pilot, expanding it to over 50 stores. Our Stop brand is the single largest brand in the business and crossed INR200 crores and second largest life cross INR100 crores during the year. Our newly launched private brand Bunde, recorded robust sales and was one of the best-performing brands in the Menswear category.

Moving to the third pillar of beauty, and beauty had one of good quarters. During the quarter, our beauty sales registered INR197 crores, a growth of 29%. Again, this is the highest sale mode in the quarter. Our overall mix of duty sustained at 17%. ICO personalization is critical for beauty. We had endeavored to make a difference of the omnichannel experience that we are able to offer because of the large physical presence that we have in our stores. We did 112,000 makeovers during the quarter, which helped us to increase the sales by INR40 crores.

As you would appreciate, makeover is a very personal engagement with our customers, and this is something which we are dialing up consistently. For the year, we did more than 400,000 makeovers. And this is helping us to increase the loyalty of our beauty customers. We launched 40 new SKUs in our private brand [Indecipherable], and the growth of our file is very encouraging. On our distribution business, we added three International businesses into our exclusive range of brands that we offer into the country.

We now have 15 premium exclusive brands through our distribution business, and we have now tied up with over 10 key retailers, and we expect to have an end during this coming quarter, growing our distribution business robustly. Finally, we opened one beauty store during the quarter, and we have also now launched our exclusive side as beauty in as well as the app called aces Beauty, which has been passed for our first business. Moving to our next pillar of omnichannel.

We are one of the first companies to invest in omnichannel, and we have continuously improved on the customer experience. As I just mentioned, the newest addition into that channel is ESS Beauty, and it is a channel specific for our beauty customers in complementing the ESS Beauty stand-alone stores that we have. Our growth to the digital sales through the digital channels continues to be robust and registered double-digit increase.

As I have mentioned in the past, we have moved away from measuring digital sales separately as we are an omnichannel retailer and what we looked at is the complete experience that we offer to our customers. Moving on to expansion and working capital. Expansion is a key focus for us and a big growth engine. For the third consecutive year, we have now opened more than 10 department stores. To be precise, we opened 11 department stores at 11 beauty stores.

Of the above metro cities and eight in Tier one, Tier two cities. Apart from the new stores, we also renovated 11 department stores and the capex for all of this has been funded by internal accruals. We have been expanding and growing in the cities where we do not have any store presence, and the growth of new customers has been very healthy in these places. On working capital, our inventory increased from INR363 crores to INR530 crores, an increase of INR167 crores.

Let me elaborate on the reasons for this. First, we are in a high-growth period and comparing against a cume impacted period. Hence, the periods are not strictly comparable. We added 11 stores in FY ’23 and another in FY ’22. Increase in stores would automatically increase the inventory, as you would know. Further, we are growing our private brand business, and that requires a higher inventory. We have now onboarded beauty brands, and for some of the beauty brands, we have moved to an outright model, which helps us with higher margins.

And last, some of the brands which have been converted to outright in fashion as well. And that’s, again, margin accretive, and we are factoring in the carrying cost as we do that. All of this is visible in the improvement in margins that we have seen. To conclude, we will follow the three Cs for the Way Forward framework, consistency, customer centricity and capital allocation. On consistency, cost, we have been consistently delivering year-on-year growth across all KPIs for the last eight quarters on revenue, PBT and margins.

Our strategic business pillars have given consistent growth, and we will continue to focus on that. On the second fee of customer centricity, our customer is at the center of everything, make great filing. Needless to say, due to this, we have consistently had over 75% loyal customers, letting us with their customer. We have taken various one-centric share attract new customers, makeovers, which are about the experiences and engagement in-store, combined with even in-store and active social media handles, connecting with customers consistently sharper targeting and enabling us to communicate the experiences and engagement that we offer and the personalization that comes with it.

We understand the changing consumer needs and sharpening the offer accordingly as India gets under Globally, India has the highest nation. And as the consumer trends change, we are staying ahead of it. Gender fluid fashion is part of the new changing trends and the fact that we are a multi-category department to focused on fashion, focused on new trends we are benefiting from it.

Combining with that and stressing on the engagement, we now have 140 and makeovers that I talked about, combined with versalization in these beauty dose, combining further with the SL Beauty app makes us a really strong player on be focused on our beauty customers. The last fee is capital allocation, we have been nimble, and we have one of the leanest valves. Our net debt is negligible.

We have repaid the term loans, and we have been investing completely from internal or increasing our footprint across the country, existing and new geographies included, renovating our existing stores, investing into digital tools and omnichannel experience for our customers. Hence, partnering with international brands to bring in exclusive relationships for our distribution business. And we do all of this staying prudent with our capital. Shoppers Stop is future ready.

Our strategic growth pillars is an acceleration mode for sustainable revenue growth. Customer footfalls have cross three pandemic levels and we are continuing to focus on increasing our conversion from the customers who come into our stores as well as online. As I conclude, as I strongly believe that the slowness is temporary that we have seen in the last two months of February and March. We are offering our customers a new taste of fashion, lifestyle and beauty needs giving an excusative shopping experience to the customers. Experience and engagement is the key and Shoppers Stop is placed in a very unique position to be able to offer a distinctly superior experience of that.

With that optimism, I conclude my speech, and we’ll now be happy to take questions.

Questions and Answers:

Operator

Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. [Operator Instructions] Our first question is from the line of Varun Singh from ICICI Securities. Please go ahead.

Varun Singh — ICICI Securities — Analyst

Yeah. Thank you for the opportunity. So my first question is on gross margin, which is very much impressive by 43%. I mean, I was looking at last seven year quarterly average, which is that comes around 39%. So I understand that there has been improvement in the revenue mix, etc. But when you say, like, do you think that 41% to 43% is a sustainable kind of gross margin given the improvement in rate that you are expecting even further from here going forward?

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

Yes, Varun, we have been consistently increasing the gross margins on a number of reasons. One, our private brand share is increasing. Second, we have negotiated with the vendors for higher margins. And third, if you remember, last year, we had a higher fix, what we call the obsolescence. So that has also played some road in lower margins last year. So all these things factor we should see an increase in margins, and we should be able to sustain this as well.

Varun Singh — ICICI Securities — Analyst

Sure. So, my second question is, if I look at the revenue CAGR from last four years perspective, I mean correcting the base for Covid impact. So we see that the revenue CAGR is around 4% and the retail expansion CAGR is also around 4% CAGR. So over the last three years, we have added more than 30 stores. I mean, back to have more than 10 store addition is quite impressive.

But can you also throw some light with regards to how many stores we would have closed over the last three years? And also maybe you can give some reasoning regarding why we have closed that store and hence, I mean, assuming that for rationalizing or optimizing the store sizes, etc, that should boil down to margin expansion thing? If you can give some color on this.

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

That’s a very good question. In terms of absolute number of store closures, it is 40. And the majority of them happened during the COVID period. And subsequent to that, in the last quarter — in the last year, we closed two stores. So that number of store closures will continue, but it will be much muted because the major loss-making ones were the ones that we tackled and we closed during the COVID year. Obviously, these are all loss-making and hence helps in the overall margin expansion.

Varun Singh — ICICI Securities — Analyst

Understood, sir. And sir, just one last question, if I may, that in the beauty brand, given that we have launched online website and app, I mean, as for the time line that you alluded during last quarter conference call. So sir, just wanted to understand that how are we posting ourselves compared to Nykaa in the beauty space

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

Our SS beauty stores and the SS Beauty app is positioned sharply in the premium space of beauty. And what we focus on is catering to the upper middle class customers and offering them a complete experience of the brands that they love as well as they would love to discover. And with some of the new brands that we are bringing in, focused on the premium and rich luxury segment, we are offering a much more curated experience for our beauty customers.

Varun Singh — ICICI Securities — Analyst

Understood, sir. That’s it from my side, sir. Thank you very much. I wish you all the best, sir.

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

Thanks, Venu.

Operator

Thank you. Our next question comes from the line of Pankaj from Kotak Mutual Fund. Please go ahead.

Pankaj Tibrewal — Kotak Mutual Fund — Analyst

Good morning and congratulations to the entire Shoppers management team on a very consistent performance and delivering on what you guys had promised a couple of years back. As it’s the year-end, it’s a time for reflection and also looking forward. So going forward in the next couple of years, [Indecipherable] team, if you can guys quantify, what are the key deliverables you are targeting from here on? It will be very helpful from an overall strategy perspective. And you’ve talked about the three pillars, three Cs, but if you can quantify it more it will be helpful. Thank you.

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

Okay, thanks for the compliment, and I appreciate it. Over the next few quarters, our focus will be implementing the strategy they have put in place. We have a very clear strategy and the performance over the last two quarters is a reiteration of the success of that strategy, and we’ll continue to delve down on that. Specifically within each of them, private brand is our first focus, and we would expect to continue growing our private brands. And the private brands currently contribute to 14% of our sales.

As we grow, we would expect that to grow ahead of the total business, taking it to probably around 20% of our total sales and close to between 25% to 30% of our apparel sales. The second strategic pillar on beauty and in beauty it is a combination of the department stores as well as the SS beauty stores that we have opened. And we now have 11 SS Beauty stores. We will continue to grow on that.

And along with the SS Beauty stores, we would also be doing boutique stand-alone stores for some of our key partners like Stauder, and going forward Nav whom we have signed up exclusive relationship. The SS Beauty app further enhances that customer experience. And again, we would expect SS Beauty to grow ahead of the company average. The per annum of growth would come from expansion and new stores. And as I said, we have committed to doing between 10 to 12 department stores every year, and the pipeline for this year and next year is robust enough for us to be able to achieve that.

Pankaj Tibrewal — Kotak Mutual Fund — Analyst

Great. Just one more question, sir, [Indecipherable]. This is for the first time that you have maintained the role, which is much higher after last year in double digits. You spoke about one of the things which is capital allocation–

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

Pankaj, Pankaj, sorry. Pankaj, we lost you for– there was some [Indecipherable].

Pankaj Tibrewal — Kotak Mutual Fund — Analyst

Yeah. So what I was saying was that after a long time, return of capital seems to be touting healthy, which was not the case for almost a decade. And — you spoke about one of the fees, which is capital allocation which is very closely linked to those innovation. Can you help us understand — from that perspective, how you are looking at things going forward because the challenge earlier for all the shareholders have been capital allocation? So just some comfort on how the rules could be defended, what you have achieved now over the last couple of years now. Thank you, that’s my last question.

Karunakaran Mohanasundaram — Customer Care Associate, Chief Financial Officer

Thanks, Pankaj. Thanks, once again. I think — that’s a very good question, and you almost transferred when will you start to — our endeavor is to consistently improve the return on capital employed and return on network. In fact, if you have seen it, our balance sheet has been pretty lean, like the loans are just net of INR30 crores. So even our on the store additions, we have been quite aggressive plus even the cost per square feet has also been pretty low consistently in the last two to three years. So to answer the question specifically, we are expecting the return of capital employed between 20 to 25 percentage in the next one to two years.

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

Further to that tankage as you would have seen one of our biggest areas of capital deployment is on expansion and new stores. And this is an area where we have had a significant reduction in the spent per store. And this has been achieved by a lot of reengineering without compromising on the quality and actually enhancing the overall customer experiences. And I do hope you’ve had a chance to look at some of our new stores, specifically in Bombay, both our city and Bandra have just been renovated and worth looking at.

To be specific, our capex spend has reduced by as much as 35% per square foot. And further to that, the bulk procurement that we are now enhancing on would reduce that further. In addition to that, we have also partnered as we go into some of the newer cities where we are negotiating and getting significant capex spend from the landlord. And that, again, helps to reduce our overall investment, enabling us to improve our return on capital.

Pankaj Tibrewal — Kotak Mutual Fund — Analyst

Fantastic. My only worry was that in the past, you have alluded about venturing into value format. Couldn’t that just defocus us from the capital allocation part. And I hope you will take care of that.

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

Absolutely, Pankaj. The value segment is a large market, and we don’t play in that segment. We are conscious of that. We are looking at a small trial, but we’ll be extremely prudent on ensuring that whatever growth we endeavor in that segment have done profitably.

Pankaj Tibrewal — Kotak Mutual Fund — Analyst

Thank you. Thank you, and all the best to the entire team. Thank you.

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

Thank you. Thanks so much.

Operator

Thank you. Our next question comes from the line of Resham Jain from DSP Asset Manager. Please go ahead.

Resham Jain — DSP Asset Manager — Analyst

Yeah hi, good morning team, and congratulations on a good set of numbers. Sir, my question is on the overall investments other than the store capex. We have been doing this digital spend at as well the omnichannel and then we implemented SAP HANA. And I think our overall digital spend has increased. Earlier, you used to mention that close to 100 basis points kind of margin impact because of that. How much impact is there because of the same? And are we seeing that coming down going forward?

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

The overall spend on digital has reduced in the last two quarters. because a lot of the heavy lifting was done at the end of last year and the beginning of this year. SAP HANA and S/4HANA implementation is complete. And not only did we do the first phase, which was the base model. We also implemented the retail and finance modules of S/4HANA, which is helping our business and improving our efficiencies within the business.

The SS Beauty investment is also now done. And the last area where we are now endeavoring is moving out the platform for shoppersstop.com. — where we will get the benefit of what we have already done on SS Beauty. And hence, the total spend would be quite appreciated. So to answer your question, the overall spend has now tapered down, and you will see that in our total investment split.

Resham Jain — DSP Asset Manager — Analyst

Okay. And sir, on the overall economics of new stores — if you can just give a sense of, let’s say, stores which has completed one year, how are you seeing a ramp-up of the stores and from the payback period perspective from a capex perspective, how do you see the overall economics working out?

Karunakaran Mohanasundaram — Customer Care Associate, Chief Financial Officer

Hi Resham, thanks for the question. The payback period is between two to 2.5 years. And we are seeing a good growth from year two, anywhere between 18 to 20 percentage — and also giving a decent return on capital employed, again, in ever between 20 to 25 percentage from year two onwards ratio. And the productive is also close to 10% higher than the existing

Resham Jain — DSP Asset Manager — Analyst

Okay. Perfect, sir. Thank you.

Operator

Thank you. Our next question comes from the line of Ankit Kedia from Phillip Capital. Please go ahead.

Ankit Kedia — Phillip Capital — Analyst

Sir, three questions from my side. You mentioned you’re not going into the outright model. We always follow the SOR model or returnable model. being a departmental store, while it has some positive impact on the margins, but inventory is a bigger risk for us while we already have private label shares increasing — just wanted to understand how — which type of beauty and upsell brands are you taking on outright model? And how is the risk weighted returns you’re calculating that

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

The major chunk on the inventory is for our own private brand. And obviously, these are at significantly higher margins, and we have better control on the overall supply — the — in the existing business where we have switched to outright, it is fairly limited. I mean it has been specific brands where we’ve had supply as an issue consistently. And hence, it is to overcome that where we move to outright. All of these brands are major, most of them come with agreement of exchange of stock at the end of the period, which minimizes any risk that we would have on redundancy.

Ankit Kedia — Phillip Capital — Analyst

Sir, my second question is on your footfalls. If I look on a Y-o-Y basis of foot fall, customer visits have grown by less than 2% on a low omnicron base where we have added 10, 11 departmental stores, we’ve added SSBeauty at and still the customer visits is 2%, 3% growth. Are there challenges in customer foot falls you are facing or the base was very high and hence, we are looking at a low customer controls in the quarter.

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

The customer, it’s not footfalls Ankit. It is a combination of eyeballs plus footfalls that we have seen. As you rightly said in the past, there was a period where the stores were partially shut or had an impact because of COVID — and that was the period where there was a massive surge in terms of eyeballs online. That is the segment which was muted for itself grew in — by almost 40%. But again, as an omnichannel business, we look — we measure the customers that we engage with across online and off-line. And that is the 2% that you are seeing.

Ankit Kedia — Phillip Capital — Analyst

So, sir, from an age profile of a consumer, are you getting younger customers on the LiteForm[Phonetic] now compared to the past- if you can just share that- because you know, Shoppers Stop is more of a family store perspective historically. And now with more younger brands coming in, the overall company, are you seeing that movement happen on a slower pace or at a much faster pace?

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

We do see a reduction in shopping of family and families and groups, and a lot more of individual purchases that are happening. We recognize the shift in trends. And as I had mentioned in my speech, we are very cognizant, and we continue to bring in brands, which cater to that segment. To be specific, we have an exclusive tie-up with good brands who are an incubator of D2C brands, and we got four brands, which are now in our stores on an exclusive basis, and all of them cater to D2C. And with these new brands coming into our stores, we attract a younger customer who has got used to a lot of the D2C brands. And this is an area we will continue to invest in. And with the exclusive partnerships, we would bring in new brands that would be right for that segment.

If I were to elaborate further in the coming months, we are actually launching a streetwear brand called Breakbounce. And again, it is on the house of growth[Phonetic]. And Breakbounce is a young streetwear brand extremely popular on the D2C channels, which will, for the first time, be available anywhere in the physical stores. So, we continue to bring in brands that are right for the younger audiences, even as we see the shift in shopping happening. Further, the opportunity that it brings in is also for us to be able to grow our conversions as we attract some of our younger customers.

Ankit Kedia — Phillip Capital — Analyst

And sir, my last question is on the beauty side of the business. Now for last quarter, the growth is lever to the company which we are seeing. While we are talking a lot positive about Beauty business, but that is not reflecting in revenue growth for the Beauty despite it being launched, you know despite SBT in one and a half years being 11-store network. So just wanted to know, while we had supply chain issues last two quarters, what are the other challenges you are facing in Q3 for the growth to be above the company average?

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

The main challenge has been on the supply side only. To reiterate, BP had made its highest sales ever, and it continues to grow. Can it grow faster? Yes, it could. And secondly, we’re confident that we, if we focus and the — initially at the beginning of the year, the maker category were still one of the last ones that rebounded from Kowa and a number of brands we are not offering makeovers and etcetera.

And that continued pretty much till June, July- both of which we had a few international brands with whom on fragrances, where we had challenges. And then again, in the beginning of this year, we had some challenges on a few of the makeup brands, which all of which has a [Indecipherable] result, one of the reasons and methods we have chosen to mitigate this is to move to outside. And that’s something which is done.

Ankit Kedia — Phillip Capital — Analyst

Sure, sir. Thank you so much and all the best.

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

Thank you, Ankit.

Operator

Thank you. Ladies and gentlemen, in the interest of time, we request you to restrict to one question and one follow-up question for participants. Our next question comes from the line of Gaurav Jogani from Axis Capital. Please go ahead.

Gaurav Jogani — Axis Capital — Analyst

Thank you for the opportunity, sir. I have a couple of questions, if I may. Sir, my first question is, if you can help us out what of the INR200 crores capex that we have incurred during the year, if you can break it up between the new store openings and also in terms of the omnichannel capex that we have done-or rather the online capex that you have here?

Karunakaran Mohanasundaram — Customer Care Associate, Chief Financial Officer

On the new stores, we spent around about INR82 crores. And on the stores, what we refurbished, we spent about INR55 crores.

Gaurav Jogani — Axis Capital — Analyst

And sir, the remaining would be on the omni- [Indecipherable]?

Karunakaran Mohanasundaram — Customer Care Associate, Chief Financial Officer

Not necessarily. And about the digital and omni would be around about INR20 crores. And there are like for the distribution in some of the these, are about INR10 crores.

Gaurav Jogani — Axis Capital — Analyst

And sir, my next question is with regards to the growth per se, IP on a four year CAGR basis, if I see for FY ’23, the CAGR comes to as earlier participant highlighted that even that matches largely the core of the square footage addition. So going ahead, also the CEO mentioned in his opening remarks that you are seeing some green shoots in the month of April. How one should go ahead and build growth given the fact that even the figures have been sub-single digits? And given the fact that we will be adding around 10, 12 stores every year, we are looking to do a 5% SSB. So, what kind of growth can we build in going ahead?

Karunakaran Mohanasundaram — Customer Care Associate, Chief Financial Officer

Specifically, Gaurav, for this year, I mean, it’s too early to say. We expect the overall growth to be- including the new stores should be in the mid-double digits. SSG growth should be in about mid-single digits.

Gaurav Jogani — Axis Capital — Analyst

Mid-single digits. So, this — the mid double-digit total growth you are saying will be including this mid-single-digit SSD growth, right?

Karunakaran Mohanasundaram — Customer Care Associate, Chief Financial Officer

That’s right.

Gaurav Jogani — Axis Capital — Analyst

Okay. Okay. Thank you. That’s all.

Operator

Thank you. Our next question comes from the line of Nihal Mahajan from Nuama[Phonetic].

Nihal Mahajan — Nuama — Analyst

Yes, thank you so much and congratulations on the strong performance. So, the first question was on the gross margin again. You did highlight three aspects to why it has improved. Would it be right to say that the change in the business model or the arrangements with vendors has been a large part of the contributor or if I compare it on a Y-o-Y basis?

Karunakaran Mohanasundaram — Customer Care Associate, Chief Financial Officer

Nihal, that contributed a very small percentage for this fiscal. But next year onwards, it should contribute probably 30 to 40 basis points.

Nihal Mahajan — Nuama — Analyst

Understood. That’s helpful. Just a related question to the small change that while there has been a spike in inventory, there has been an increase in creditors also. So, net-net, how would this end up impacting the working capital for the business going forward?

Karunakaran Mohanasundaram — Customer Care Associate, Chief Financial Officer

Specifically for this year, if you have seen, there is a reduction in working capital of around about INR147 crores. But we have taken steps to reduce the inventory from Q1 onwards. So, we do expect the funding from working capital for the full year. The negative working capital should increase at the end of this fiscal year.

Nihal Mahajan — Nuama — Analyst

Got that. Sir, just final question. You did mention the capex per square feet for the new stores is down around 35% ballpark, what is that number now that we are looking at for the new stores?

Karunakaran Mohanasundaram — Customer Care Associate, Chief Financial Officer

Isn’t that between 2,200 to 2,300, depending upon what we have, but then we have Beauty. If we don’t have Beauty, it will be around about 2,200. And if we have Beauty, it will be slightly above 2,300.

Nihal Mahajan — Nuama — Analyst

This is helpful. I will come back in the queue.

Operator

Thank you. Our next question comes from the line of Aliasgar Shakir from Motilal Oswal.

Aliasgar Shakir — Motilal Oswal — Analyst

Yes, thanks for the opportunity, sir. I just wanted some sense on the growth-so-and where is this SSG coming from? So, in this particular quarter, if I see Y-o-Y footfall is up about 2% against a 5% area or approximately addition. And even ATB is up about 5%. So, in a way, implies that number of bills would have grown nearly about 25%. That’s a very significant increase probably in the conversion rate. So strategically, if you could just help us how-I mean, what is really changing, and this timing is kind of an SSG.

And just one follow-up here, as you mentioned mid-single SSG is what we are targeting going forward with 10 store addition in a way probably implying about mid to high teens growth. So I mean, we have been having earlier again — so with that kind of an SSG, I mean probably we would need something about mid-teens kind of SSG growth to achieve that target. So how are we seeing that getting achieved?

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

So the total growth, as you rightly pointed out, a combination of like-for-like growth and also the total. Now as you would also appreciate with the increased number of it new stores in the mix, it would contribute to a higher same-store growth, and we would continue to see the benefit of that over the next to as we continue to invest into new stores. Further, the increase in the total bill value, and it is a combination of price and volume. The price increase itself has been fairly plan in terms of the product mix, and that is what has driven rather than an absolute increase.

And if I were to be even more specific, the biggest increase or bulk of that increase in the price has come from the non-apparel category. And where we have nation — and this footwear as an example, where we’ve upgraded the brands that we retained, and that has contributed to the increase in price rather than the prices for the same product. Further, what will add to the growth is, apart from the new stores and department stores, the beauty dose and the addition of beauty dose including the — our own post the boutique stores for our brand partners that we talked about would contribute to accelerating that growth.

Aliasgar Shakir — Motilal Oswal — Analyst

Okay. Just to follow up here is so ATV, you mentioned, volume plus price increases has grown — so I mean, when I see your revenue growth in this quarter, even if I adjust for that ATV, I mean, it’s a very significant growth in your number of bids. — which is nearly about 25%. So I was just trying to get some sense of what would have led to this kind of a big increase in the despite footfalls not growing?

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

So the overall, as we said, into stores, we did have a significant increase, and we do get a much higher build values in our stores compared to online. And it is that weightage, which constitutes that higher growth in ATV.

Aliasgar Shakir — Motilal Oswal — Analyst

Okay. Got it. And we still stick to our target of doubling revenues by FY ’25, right, on an FY ’20 base that we had earlier indicated?

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

It was FY ’20 that we are indicating, and we stick to that.

Operator

Thank you. Our next question comes from the line of Sameer Gupta from India Infoline. Please go ahead.

Sameer Gupta — India Infoline — Analyst

This is regarding the capex that you mentioned. So INR82 crores for new store additions is what I heard during the call. And this is an area addition of around 2.3 lakh square feet during the year on a net basis. So this is translating into capex per square feet of around INR3,500 — but you also mentioned that the capex per square feet has been reduced and now it is at around INR2,200 crores to INR2,300 crores. So just trying to reconcile these two data points?

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

So it is — the capex is not just the 11 department stores. It’s also beauty dose. And the beauty dose have — I mean, these are smaller stores. and also more premium and hence the capex per square foot for those stores are much higher to recap, we had — we have opened 11 beauty dose at 11 department stores. and the spend is for a combination of both put together.

Sameer Gupta — India Infoline — Analyst

Okay. Okay. That makes sense. Just one follow-up or one more question, if I can squeeze in. I just missed the SSS growth number reported by you for fourth quarter and full year.

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

For the fourth quarter specifically, the same-store growth is a bit complicated surely because it’s not a true comparison. The absolute growth was 32% on last year. But again, as I said, because there was a period last year in the quarter where stores were partially closed.

Sameer Gupta — India Infoline — Analyst

That’s all from me.

Operator

Thank you — our next question comes from the line of Resham Jain from DSP Asset Managers.

Resham Jain — DSP Asset Manager — Analyst

So I have just one more question on the stores, which we are opening. So some of our peers have established a model thereby, the full investment of the store is done by the landlord. — and a percentage of revenue is being shared with them. And in fact, some of the stores which were they have done a capex, they are transferring the complete kind of book value to the landlord just to free up the balance sheet. Are we experimenting with such models or — are we experimenting with such models are seeing such kind of deals?

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

Arsham, that’s again a very good question. To answer your question, Yes, we are excluding business we can get the partners either to part from or fully fund our capex. We’ve just started doing it for some of the new stores. So probably in three months or four months down the line, we should be able to give them a definite answer for that.

Resham Jain — DSP Asset Manager — Analyst

Because I’m specifically happening on this is because one of our peers has basically significantly ramped up the store expansion through this model because it frees up the balance sheet. I don’t know whether that’s a correct model or not, but Yes.

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

Us, Resham, to answer your question. The only the difference is the capex, what we are missing in our sole is anywhere between 2-10 depending upon the size of the store, depending upon the offerings, what we have. And whereas the score what you are mentioning, I mean I don’t want to go to those numbers. I know the company which you are talking about. Those numbers are significantly different from the investments what we are making.

Operator

Our next question comes from the line. Please go ahead.

Unidentified Participant — — Analyst

My first question is that we’ve been highlighting that the supply chain issues would be streamlined by the fourth quarter and has gone by. And still you decided that the issues are purchasing. So what is your commentary are there? And we shifted to the outright model, but do you see any streamlining on that side? — going ahead? And what would be the margin differential between the outside model and that

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

Thanks for the question. appreciate where you’re coming from. And in a rapidly growing market, especially in a category which is quite heavily dependent on imports, some of the supply chain issues would be expected to be expected, and that’s something which we need to deal with. And the outright was one of the ways we have dealt with it. The second is moving with the distribution channels that we have launched and the subsidiary that we have now established, we are able to again get a better handle on the — our own supply.

The third area is also we are slowly growing on our private brand, which again helps and fourth, also partnering with a number of where it is appropriate. — which again helps the supply chain issue are mitigating against that. So those are the four different ways by which we are managing and ensuring that we continue to be on the high growth trajectory that we have embarked on for Beauty.

Unidentified Participant — — Analyst

Okay. And my second question would be that you highlighted that we have been resisting refusals. So could you give us a sense like what categories are doing there? How is the panel performing on those?

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

I wouldn’t want to get into specifics. It’s still early days in the quarter. It has been quite mixed, specifically because we are the comparative period last year was the initial search that we had from pre-forward and also where there has been a shift in the data base of weddings, etc. What I would say is that we are managing to write that and come up ahead and quite reasonably pleased with the way we are progressing on that.

Unidentified Participant — — Analyst

Okay, thank you.

Operator

Thank you. Ladies and gentlemen, at this time, we request you to restrict to one question per participant. Our next question comes from the line of Devanshu Bansal from Emkay Global Financial Services Limited. Please go ahead.

Devanshu Bansal — Emkay Global Financial Services Limited — Analyst

Yes, sir, congrats on a good turnaround Sir, you indicated that Fabian March were relatively slower, while Jan saw pickup in growth. So, if you could share growth trends across the three months for March quarter individually, it would be better to understand the macro-weakening.

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

Devanshu, I’m broadly honest, I wouldn’t want to do that. And the reason is because the periods are not comparative Jan had end of season sale, had different things going on, etc. So, it won’t be a true indicator, and that’s the reason I wouldn’t want to do that more so because, as I said, I mean there were two things which happened, in the US, which is normal. But then in Jan 22, there was cover. So the comparatives are not really to got it.

Devanshu Bansal — Emkay Global Financial Services Limited — Analyst

And sir, I wanted to understand this gross margin improvement. I know there have been multiple questions on this brand. So, the drivers, the versus prep gross margins have improved by about 400 basis points. So, you indicated one of them being private label as well as some negotiations with vendors for higher margin. In my view, this 200 bps increase in private labels would have added about 100 basis points to our gross margins. But just if could sort of help us understand the rest of the margin improvement, the drivers for the rest of the margin improvement.

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

Devanshu, thanks a lot for the question. You almost answered the question. See, as is a private plan, we have negotiated better with our vendor partners. Third most important thing is we also had a onetime high obsolescence last year. That has been the rationalized right now, and last but not the least, even the discounts have been optimized over a period of time that has also reduced it. But those are the three or four large reasons where the margins have improved.

Devanshu Bansal — Emkay Global Financial Services Limited — Analyst

So from vendors, you mean your tenders for private label business or for third-party brands?

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

Both.

Devanshu Bansal — Emkay Global Financial Services Limited — Analyst

Okay. Lastly, Sir, you said Tier two, three is facing challenges relatively more versus metros, but our expansion has been primarily in subsidy, so do you foresee a change in strategy or a slow expansion because of the trends in DCT?

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

The softness that we are seeing in some of these Tier two, Tier three cities, we believe is temporary and definitely not something which is structural. And hence, we don’t see any reason for us to revisit our strategy of continuing to expand into markets where we are not present. Our new store strategy is always led by focusing on a, the availability of our target customer and to remind, we are in the premium lifestyle space, so we are getting to the upper medulla, and we look for customers like catchments where there is a significant presence, and we are not present. And the runway for that, the pipeline for that is very, very strong. And again, to reiterate, we are being quite specific in terms of the store sizes that we go for to ensure that we have great productivity to compensate for the target customer base being smaller as we go into some of the universities.

Devanshu Bansal — Emkay Global Financial Services Limited — Analyst

Thank you for answering, Sir.

Operator

Thank you. [Operator Instructions] Our next question comes from the line of Shrey from Swan Investments. Please go ahead.

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

There is a lot of disturbance in the background.

Shrey — Swan Investments — Analyst

Hello?

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

Yes.

Shrey — Swan Investments — Analyst

So just wanted to understand, going back to last year, if I read your commentary, you’re saying Jan and mid of Feb was impacted the Omega Varian had that not been there, we would have grown by about 28-odd percent. So, at that point in time, in a rough figure of about 100,000 of top line. So, on that number, we’ve done 1,175 this quarter. So that comes to about 11-odd percent. So, in that light, how do you see this 11% growth rate for your company? It’s my first question.

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

If I heard you right, what you’re referring to is the Q4 of financial year ’22 and the guidance of what was the impact because of the risk, and that’s how we have looked at it. Is that right, Shri?

Shrey — Swan Investments — Analyst

Yes.

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

Which is a fair assessment. And the growth that we have seen subsequent to that, and even if you were to normalize for that, the growth continues to be robust and we are reasonably pleased with the growth that we have seen.

Shrey — Swan Investments — Analyst

[Indecipherable]

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

So your line is not clear. I’m not able to hear you properly.

Shrey — Swan Investments — Analyst

Okay. I’ll repeat myself. Is that clear now?

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

Yes.

Shrey — Swan Investments — Analyst

Yes. So, normalizing for that, our growth continues to be robust, and we are pleased with the growth that we have seen so far. Particularly as there has been a slowdown in the market, and despite that, we’ve been able to grow robustly.

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

Alright.

Shrey — Swan Investments — Analyst

My last question is, sir, on your square foot addition. If I’m not wrong, last year, at this point in time, we had about 3.7% of total retail space. And this year, we are at about 3.9%, so the net addition is about $0.18 million. So that comes to about 18,000 odd square foot in terms of store addition, so is my figures right or my sense is, have we renovated existing stores and cut their sizes? Or how should I look at this number?

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

I don’t think your numbers are right, Shey, and I think it might be because last year, we were reporting the chargeable area or the super built-up area which we shifted to being corporate area as the industry know and the 2 lakh 90,000 square feet that we currently have, is for the department stores is on carpet area. And that’s the vision we have asked, the 290,000 square feet is what we have added in this financial year.

Shrey — Swan Investments — Analyst

Okay. I think that is all. Thank you.

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

Okay.

Operator

Thank you. Our next question comes from the line of Jignesh Kamani from GMO. Please go ahead.

Unidentified Speaker —

[Indecipherable]

Jignesh Kamani — GMO — Analyst

Conesa good set of numbers. Just wanted to know, this time winter was delayed, so it has any positive impact on the revenue and the margin, and similarly, how is the full prices this quarter versus by way?

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

Thanks for the compliments Jignesh. Winter was decent without being great, if I put it that way. The onset of winter was delayed and hence, we could not fully maximize on what we could have achieved. I wouldn’t want to get into the specifics of full price and reduced because that’s not something which we would divest.

Jignesh Kamani — GMO — Analyst

And any idea on the how is revenue and the profitability from the muted distribution segment in the fourth quarter and some color for the next year?

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

We just started in the month of March. We are in the process of appointing retailers, so we have completed close to 10%, and we may have to add another four or five in the next one quarter. So, the sales have been negligible in the fourth quarter. This year, we expect anywhere between INR180 crores to INR200 crores for the full year.

Operator

Our next question comes from the line of Disha Ship from Annual Share and Stock Broking Private Limited. Please ahead. Disha, your volume is not audible. Could you please speak up?

Disha Ship — Annual Share and Stock Broking Private Limited — Analyst

Now, am I audible?

Operator

Yes, please go ahead.

Disha Ship — Annual Share and Stock Broking Private Limited — Analyst

Sir, when we are targeting around doubling of our turnover, it will be double digit like a 15% CAGR growth. So in the past, so many years we have around mid-single digits CAGR growth. So if you can throw some light. I know you have answered that question, but if you can still be deeper into it since they have not performed in the past, what will lead to the mid-double-digit growth around 15%.

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

Bisha, thanks [Indecipherable] in a way, you have answered your own question. But I would reiterate what would contribute to the growth is implementing of our strategy. Our strategy built on the foundation of a strong partnership that we have with our national brands. And we continue to grow on that bringing in great customer experience and engagement. Within the strategic pillars, the three engines of growth that we would have our private firms, beauty, and omnichannel expansion across online and off-line.

Disha Ship — Annual Share and Stock Broking Private Limited — Analyst

Okay, sir. And sir, in terms of then you said this quarter, we grew 32% like-to-like growth. Am I getting a figure, right?

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

That’s correct.

Disha Ship — Annual Share and Stock Broking Private Limited — Analyst

That’s correct. And for FY ’23, how was the like-to-like growth?

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

Again, not a true comparison. It was 63% was the total growth like for like was 57% growth.

Disha Ship — Annual Share and Stock Broking Private Limited — Analyst

Okay. And sir, since we are expanding aggressively, if you can throw some light on the debt requirement or we’ll fund

Karunakaran Mohanasundaram — Customer Care Associate, Chief Financial Officer

Bisha, we don’t foresee any debt for our expansion. We should be able to fund from internal accruals.

Disha Ship — Annual Share and Stock Broking Private Limited — Analyst

Okay. And we only [Indecipherable] like would be around?

Karunakaran Mohanasundaram — Customer Care Associate, Chief Financial Officer

Between same similar to this year, anywhere between INR150 crores to INR200 crores, yes, that’s right.

Disha Ship — Annual Share and Stock Broking Private Limited — Analyst

Okay, sir. Thank you. That’s it.

Karunakaran Mohanasundaram — Customer Care Associate, Chief Financial Officer

Thank you.

Operator

Thank you. Our next question comes from the line of Tejas Shah from Avendor Spa. Please go ahead.

Tejas Shah — Avendor Spa — Analyst

Thanks for the opportunity. Congrats on good set of numbers. Sir, there’s always a trade-off that in private stable strategy, which is positive on margins, but kind of stabilized at [Indecipherable] so if I look at our numbers also a four year CAGR basis, that dropped 19% to 23%, or roughly 4.5%, 5% odd CAGR growth, our inventory has grown at somewhere around 8%, 9% CAGR. So just wanted to understand how the benefits are [Indecipherable] but how would you like to manage it in an absolute basis on overall working capital, we are managing but on inventory days basis, how are you planning to [Indecipherable]

Karunakaran Mohanasundaram — Customer Care Associate, Chief Financial Officer

I did not get the numbers. Are you saying that the private brand CAGR is 5%?

Tejas Shah — Avendor Spa — Analyst

No, sir. Overall revenue growth is 5%. Our inventory growth is somewhere around 8% CAGR from ’19 to ’23.

Karunakaran Mohanasundaram — Customer Care Associate, Chief Financial Officer

I agree. That’s what Venu spoke at the beginning of the meeting. Our inventory is higher. Let’s understand the constitution of the business. We have close to 2/3 of so and 1/3 is. We are focused on the inventory where it’s a paid inventory. Three or four reasons. Our private brand has been growing between 50% to 70% last year. So that inventory will be [Indecipherable] Second, we also took about some of the shifted model on apparel and beauty. And that’s the reason the inventory is higher. In fact, the inventory CAGR is significantly lower than the present CAGR, what we have achieved the growth.

Tejas Shah — Avendor Spa — Analyst

Sure. But sir, how should we think about this in let’s next two, three years? Will it remain at the same percentage or because the strategy shift is there, it will accelerate this direction further?

Karunakaran Mohanasundaram — Customer Care Associate, Chief Financial Officer

A bit difficult to answer that question Tejas because it has — the dynamics are completely different. As we continue to grow on the private brand, the inventory will be higher. And largely depends on what our private brand chat and the growth for the next two to three years.

Tejas Shah — Avendor Spa — Analyst

Okay. Sir, let me turn this around. Sir, our ROI, but private business is really higher because the inventory deployment is higher versus our third-party banks?

Karunakaran Mohanasundaram — Customer Care Associate, Chief Financial Officer

The net margin, what we are doing from the private brand is also higher and commensurate with the investments, what we are making.

Tejas Shah — Avendor Spa — Analyst

Yes, sir. But that’s what I’m saying, that the higher market compensates for higher effective. So does it culminate it to better ROI interest of the business.

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

It more than covers up for it. And hence, the investment is definitely worthwhile. And we are quite as well as delighted with the progress we are making on that. Further to that, I think the other point which is also worth calling out is that as we grow our private brands, it also brings in the customer, giving them a different reason to come into our stores. So combining with the national brands and international brands, our own exclusive brands gives a different reason for the customer to walk into our stores.

Tejas Shah — Avendor Spa — Analyst

Okay, sir. Thanks a lot.

Operator

Our next question comes from the line of Yash Bajaj from Lucky Investment Managers. Please go ahead.

Yash Bajaj — Lucky Investment Managers — Analyst

Hello?

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

Yes, Yash. Go ahead.

Yash Bajaj — Lucky Investment Managers — Analyst

Hi. Thanks for the opportunity, sir. Sir, just trying to dive a little more deeper on the private brand business. So I just wanted to understand versus a third-party brand, what is the positioning of our private brand in terms of the style and the pricing? That is my first question.

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

So Yash, our positioning of our private brand, even the good segment within our [Indecipherable] stores and online. And it complements the national and international brands that we have. We are very clear that we don’t want our private brands to be competing, but should be complementary to what we already offer. And hence, widening the choice that we are giving to our customers to evaluate or to delve further into it, each of our brands caters to a lifestyle need. The brand Ethos is very clearly defined.

And it is within the framework of that brand, we thought that the brand grows to. If I were to again explain that even a little bit more Life is one of our larger brands, not the largest, but one of our larger brand s. It’s very clearly defined as a MIM casual wear brand. And that’s what the brand would cater to. And this is one of the significant shifts which we have made over the last two to three years, where the definition of each brand has been sharpened. And by doing that, it is addressing a specific lifestyle need of every customer who walks in, and it is doing that by being better value within the box compared to the more well-known national and international brands that we would have in our stores.

Yash Bajaj — Lucky Investment Managers — Analyst

Okay. Got it. And my second question was the stores which we are adding, we are aggressively adding more and more stores in Tier two and 3. So would the offering of the — or the mix of private and third party be different for a Tier two, Tier three versus a metro Tier 1?

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

The mix of brands that we would have in a new store is very strictly guided by the catchment that we are going into and the propensity to spend of the customer in that catchment. Having said that, the mix of private brand would be slightly higher than what we would have in the more established markets.

Yash Bajaj — Lucky Investment Managers — Analyst

The more established markets?

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

Yes, the established stores that we have, when I said market cement to that we already had. We do see that in our newer stores, the contribution of our private brands tends to be fairly high, much higher than what we would have in our current stores. And this is further accentuated by the fact that we are opening more compact stores. And hence, the split or percentage mix of private brands within these compact stores would be even higher.

Yash Bajaj — Lucky Investment Managers — Analyst

Okay sir, got it. Thank you so much.

Operator

Thank you. Our next question comes from the line of Padmini Dhruvaraj from Informist. Please go ahead.

Padmini Dhruvaraj — Informist — Analyst

Hi, can you hear me?

Karunakaran Mohanasundaram — Customer Care Associate, Chief Financial Officer

Padmini, we can’t hear you. Can you come closer to your mic? Still, we cannot hear you, your voice cracking currently.

Unidentified Speaker —

Call recording has now ended.

Padmini Dhruvaraj — Informist — Analyst

Is this better now?

Karunakaran Mohanasundaram — Customer Care Associate, Chief Financial Officer

Yeah, it’s better now

Padmini Dhruvaraj — Informist — Analyst

Okay. So I wanted to ask if you are planning to explore more in e-commerce maybe by partnering with some of the brand segment [Indecipherable]

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

As of now, we are –our brands are available on Amazon. And we are focused on shoppersstop.com. As we have always emphasized, we have moved from a brick-and-mortar retailer to being an omnichannel retailer and we offer a similar offer across shoppersstop.com and our own stores for our customers to shop from. In addition to that, we are currently present on Amazon. And we — while we wouldn’t rule out further partnerships, really, our focus will be on shoppersstop.com.

Padmini Dhruvaraj — Informist — Analyst

Okay, thank you.

Operator

Thank you. We take our last question from the line of Akshay Krishnan from ICICI Securities. Please go ahead.

Akshay Krishnan — ICICI Securities — Analyst

Yes, hi, sir. Thanks for the opportunity. Just one trying to understand what will be the contribution of the quantum of bonus that we received from the brands I think — my understanding is right, we get a bonus from these branded players once we achieve a certain target of volumes at Q4 in

Karunakaran Mohanasundaram — Customer Care Associate, Chief Financial Officer

Thanks for that question, Akshay. They are all completely confidential, and we can’t share because we do have a confidentiality agreements with vendors — all I can say is they are consistent. It’s not something that has happened only this year. It was there this year. We have — we achieved the targets last year. These effects particularly, we correct — and we also have targets for this year. And if we achieve the targets, we’ll get this year.

Akshay Krishnan — ICICI Securities — Analyst

So one final question, sir. So it around INR4,000 plus or for ASP around 1,500. Is there any stress level that you’re finding in any tickets you say like will be between a 2,030 range or like sub-1,000 ranges as a consumer listing the store?

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

We’ve now had 12 quarters of consecutive growth in the ATVs, and we are not seeing any resistance at any particular price points as I would want to emphasize the growth in the ATV is is mainly because our customers are blessing us with more business. There has been some increase because of price, but that, again, is not just a price for same product, but because of the product mix. So to answer specifically your question, none that we have noticed.

Operator

Thank you. Ladies and gentlemen, we have reached to the end of the question-and-answer session. And on behalf of Shoppers Stop Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

Venugopal Gopinathan Nair — Executive Director, Managing Director, Chief Executive Officer

Thank you.

Karunakaran Mohanasundaram — Customer Care Associate, Chief Financial Officer

Thanks, Mamta. Thank.