Shoppers Stop net dips 95% on rising costs

Shoppers Stop, operator of large format department, home, and specialty stores, said its net profit for the quarter ended June declined 95% to R0.5 crore owing to higher rents, power rates and slowing consumption.

Shoppers Stop, operator of large format department, home, and specialty stores, said its net profit for the quarter ended June declined 95% to Rs 0.5 crore owing to higher rents, power rates and slowing consumption.

HT Image

The retail operator saw its retail turnover surge 15% to Rs 501 crore as the company claims it managed to maintain like-to-like volumes during the quarter. “Overall costs have gone up unexpectedly by almost 27%,” said Govind Shrikhande, managing director, Shoppers Stop.

The company saw its lease rent expenses during the quarter surge 21% to Rs 49.3 crore and electricity expenses surge 39% to Rs 15 crore.

“There is a softness on spending but not a complete pull down. While the overall consumption scenario is negative we expect to maintain 5% like-to-like growth,” said Shrikhande.