The Indian retail company Shoppers Stop announced a net loss of INR 20.59 crore for the second quarter ended September 30, 2024, following sluggish consumer demand. This is a significant contrast to the previous year, when it recorded a net profit of INR 2.73 crore during the same quarter.
Shoppers Stop reports 7.13% revenue growth
According to Indian Retailer, the company said that despite the hit to profitability, their overall revenue increased slightly. Shoppers Stop’s total income for the July-September quarter went up by 7.13 percent to INR 1,124.62 crore, compared to INR 1,049.70 crore in the same period last year. This shows a mixed quarter for the retailer, with both growth and challenges in the current economy.
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Nonetheless, there was a rise in the operational costs of the organisation with total spends in September quarter amounting to INR 1,151.31 crore. The increasing costs have been difficult in the sense that Shoppers Stop has to deal with an ever after, competitive, and dynamic retail market.
Shoppers Store expands with 25 new stores launch
Despite the slow market, Shoppers Stop kept expanding. In the July-September quarter, they opened 25 new stores: 19 Intune stores for tech and lifestyle products, 1 new Department store, and 5 HomeStop outlets for home goods and decor.
“Demand was muted in July and August, impacted by fewer wedding dates, extended rains, and overall weak discretionary spending,” said Kavindra Mishra, Executive Director and CEO, Shoppers Stop.
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Currently, Shoppers Stop has 112 department stores across India. The retail chain also manages 11 premium home concept stores and 87 Specialty Beauty stores featuring international brands like M.A.C, Estée Lauder, Bobbi Brown, Clinique, Jo Malone, Too Faced, and SS Beauty. Additionally, Shoppers Stop has 50 Intune stores and 20 outlets at major airports, catering to various consumer needs and preferences.
Meanwhile, Shoppers Stop’s shares fell by 2.32 percent, closing at INR 712.05 on the BSE on Tuesday. This drop shows investors’ caution as the company deals with changing consumer trends and economic pressures.
