Globus stores losses mount 14 percent to Rs 28 crore for FY 16-17

By

Maverick Martins

Published
Jan 2, 2018

Indian fashion retail chain Globus stores losses mounted 14 percent to Rs 28 crore (approx $4.5 million) for the financial year 2016-17 with revenue falling 4 percent to Rs 211 crore (approx $33 million) for the fiscal.
 

The operational income of the firm saw a 4 percent decline at Rs 211 crore with loss before interest, taxes, depreciation and amortisation surging 267% to Rs 9 crore (approx $1.5 million), according to the company’s filings with the MCA.
 
With the entry of international brands and expansion of e-commerce in the country, retailers like Globus are finding it difficult to adapt to the changing market conditions and remain competitive.

The last financial year in particular has been bad for most fashion retailers due to demonetisation and implementation of the Goods and Services Tax (GST).
 
Globus has attributed the rise in losses to the heavy discounting model adopted by e-commerce firms which had an impact on sales and margins of the fashion retailer.
 
To cut down on its losses Globus was forced to shut down five of its non performing retail outlets in Hyderabad, Vijaywada, Nagpur, Kandivali and Pune during the fiscal.
 
The company is now exploring newer markets for growth and looking to launch its own private labels for better margins in the coming year to revive the fortunes of the firm.
 
Launched in 1999 Globus currently has around 38 stores across the country.