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.
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.