Retail chain Shoppers Stop posts net loss of Rs 22.72 cr in first quarter

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Retail chain Shoppers Stop Ltd on Thursday reported a consolidated net loss of Rs 22.72 cr in the June 2024 quarter, hit by subdued consumption due to prolonged heat waves, elections and inflation.

The company posted a consolidated net profit of Rs 14.49 cr in the corresponding period last fiscal, Shoppers Stop said in a regulatory filing.

Consolidated revenue from operations in the quarter under review stood at Rs 1,069.31 cr as against Rs 993.61 cr in the year-ago period, it added.

Total expenses were higher at Rs 1,104.51 cr in the first quarter compared to Rs 980.92 cr in the same period last fiscal, the company said.

"The industry witnessed subdued consumption due to prolonged heat waves, elections, fewer weddings and inflation... This has impacted our profits, however, we have a strong recovery plan," Shoppers Stop Managing Director and CEO Kavindra Mishra said.

Some of the recovery plans include continuous focus on premiumisation, investment in marketing to improve customer entry, elevating customer experience through high-end coffee shops in several stores, increase in personal shoppers, particularly during the festive season, he added.

"We are also planning to close a few unviable stores and rationalise costs during the year," Mishra said.