Shoppers Stop Q2 revenue down 12 percent, reports loss of Rs 22 crore

By

Maverick Martins

Published
Oct 27, 2017

India’s leading retail chain Shoppers Stop Limited (SSL) revenue for the second quarter ended September 30 was down 12 percent to Rs 838 crore (approx $128.8 million) as against Rs 962.01 crore (approx $148 million) in the year-ago period.

The net loss of the firm was Rs 21.8 crore (approx $3.4 million) in the July-September quarter compared to a profit of Rs 10.69 crore (approx $1.6 million) in the year ago period.
 
The transition into the Goods and Services Tax (GST) regime was one of the main reasons for the company’s poor showing in the quarter. However, SSL is confident to bounce back in the next quarter with the help of festive season sales and Amazon India deal.

"Q2 was relatively subdued owning to stock and supply challenges on account of GST implementation. However, teething issues have been resolved and we are well on track for a strong festive quarter," Shoppers Stop Customer Care Associate and Managing Director Govind Shrikhande said in a statement.
 
"We continue to focus on building India’s foremost omni-channel retail company. Our partnership with Amazon India to list our entire portfolio on their marketplace will give a significant boost to our existing online play. Our exit from Nuance Group and HyperCity will further sharpen our focus on core departmental store business. With all these steps we believe SSL is on a clear path of transformation and higher profitable growth," Shrikhande added.
 
During the quarter, the company also sold 5 percent in its namesake lifestyle and fashion arm to Amazon.com.
 
The company added 1 Stoppers Stop store, 3 MAC stores and 3 Crossword stores during the quarter. Shoppers Stop Limited ended the quarter with 80 Shoppers Stop stores and 19 Hypercity stores across the country.