2008 was particularly bad for Shoppers’ Stop, which posted a net loss of Rs 24 crore in the first quarter of 2008-09.
However, it turned around within a year, posting a profit of Rs 2.5 crore for the quarter ended June 30, as measures to retain its topline and streamline expenses bore fruit. Gross retail turnover increased marginally at 1 per cent to Rs 308 crore.
“In 2008, the slowdown ensured that the upper middle class and middle class opted to shop only at value marts. Thus, we had to rethink our strategy as the upper-middle class has always been the target audience,” said BS Nagesh, managing director, Shoppers’ Stop.
The company therefore got down to concentrating on its loyalty card members by offering various promotions. “We offered concessional schemes that helped us to manage our cash fairly well,” said Nagesh.