Shoppers Stop closes two stores due to low profitability
Retail chain Shoppers Stop Ltd has closed down two of its stores due to poor sales and low profitability. The two stores were located at Orion East Mall, Banaswadi, Bengaluru, and The Grant Mall, Velachery, Chennai.
The sales revenue from the above two stores to Shoppers Stop overall revenue for the financial year 2018-19 was Rs 35 crore ($5 million).
The Orion East Mall store at Bengaluru had contributed Rs 18 crore, while the Grant Mall store at Velachery Chennai added Rs 17 crore.
Due to the challenging economic environment, Shoppers Stop has been closing down its loss-making stores and opening new ones at strategic locations to fuel future growth of the company.
The company has set aside an investment of Rs 150 crore on the upgrade and opening of new format stores. The new stores will have high-end brands along with the company’s private-label brands, as it looks to cater to a wider audience to boost sales and improve margins.
With the closure of two stores, Shoppers Stop now has 89 locations, which includes five airport stores under its operations.
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