Muted Demand Hits Shoppers Stop's Bottom Line

Shoppers Stop reported a net loss of Rs 20.59 crore in Q2 2024 due to muted demand. Despite a 7.13% rise in income to Rs 1,124.62 crore, expenses reached Rs 1,151.31 crore. The retail chain, expanding with 25 new stores, faced challenges from weak consumer spending and weather impacts.

Retail chain Shoppers Stop posted a consolidated net loss of Rs 20.59 crore for the second quarter of 2024, ending September 30, due to sluggish demand.

This contrasts sharply with the net profit of Rs 2.73 crore the company recorded in the same period of the previous year, according to its regulatory filing.

Despite the downturn, the company's total income rose by 7.13% to Rs 1,124.62 crore, against Rs 1,049.70 crore from a year earlier, while total expenses in the quarter surged to Rs 1,151.31 crore. The company added 25 new stores, including 19 INTUNE, one Department, and five HomeStop locations, during this period.

Executive Director and CEO Kavindra Mishra attributed the muted demand to reduced wedding occasions, prolonged rains, and generally weak discretionary spending. Shoppers Stop operates 112 department stores and numerous specialty outlets. The firm's shares closed down by 2.32% at Rs 712.05 on the BSE on Tuesday.

(With inputs from agencies.)