Shoppers Stop skids after closing some stores

Shoppers Stop dropped 2.13% to Rs 342.75 at 11:50 IST on BSE after the company said that it closed Shoppers Stop stores at Inorbit Mall-Pune and Nirmal Lifestyle-Mulund.

The announcement was made after market hours yesterday, 10 November 2016.

Meanwhile, the BSE Sensex was down 422.60 points, or 1.54%, to 27,095.08.

On BSE, so far 100 shares were traded in the counter, compared with an average volume of 1,039 shares in the past one quarter. The stock hit a high of Rs 342.75 and a low of Rs 339 so far during the day. The stock hit a 52-week low of Rs 325 on 9 November 2016. The stock hit a record high of Rs 422 on 23 December 2015. The stock underperformed the market over the past one month till 10 November 2016, dropping 5.43% compared with 2.01% fall in the Sensex. The scrip also underperformed the market in past one quarter, shedding 7.11% as against Sensex's 0.93% fall.

The mid-cap retail firm has an equity capital of Rs 41.75 crore. Face value per share is Rs 5.

Shoppers Stop said that it closed Shoppers Stop stores at Inorbit Mall-Pune and Nirmal Lifestyle-Mulund, due to lower than expected businesses and its low profitability. During the last financial year ended 31 March 2016 (FY 2016), sales from Inorbit Mall-Pune was Rs 24.91 crore which is 0.66% of the turnover of the company and sales from Nirmal Lifestyle - Mulund was Rs 16.67 crore which is 0.44% of the turnover of the company. With these closures, the company has now 81 Shoppers Stop (including six airport stores) stores under its operations. And also, the company said that its 51% subsidiary company; Hypercity Retail (India); has closed Hypercity store at Inorbit Mall-Pune due to lower than expected business and its low profitability. The sale from this store for FY 2016 was Rs 13.27 crore which is 1.4% of the turnover of the Hypercity. With the closing of this store, there are now 19 Hypercity stores.

Shoppers Stop's net profit declined 11.1% to Rs 10.69 crore on 7.1% rise in net sales to Rs 939.53 crore in Q2 September 2016 over Q2 September 2015.

Shoppers Stop is engaged in the busines of retailing a variety of household and consumer products through departmental stores.

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