Same-store sales growth across formats of the Raheja-owned Shopper’s Stop Ltd, which runs department stores and speciality outlets, further dipped to 7.5 per cent in first quarter of the financial year 2010, as consumers continued to spend less on lifestyle and luxury items to beat the slowdown.
The company had posted a 3 per cent drop in its same-store sales growth across its formats in the third and fourth quarters of financial year 2009, too, after managing a 7 per cent growth in Q2 in the last financial year.
Same-store sales, a common metric in the retail industry, compares sales of stores that have been in the business for a year or more. This measure allows investors to determine what portion of new sales has come from sales growth and what portion from opening new stores.
“Apart from consumer sentiments, the film producers-multiplex conflict also led to slower sales. Overall economic conditions have had a direct impact on sales and profitability,” Shopper’s Stop Ltd Chief Executive Govind Shrikhande said.
On the other hand, the Kishore Biyani-led Pantaloon Retail’s same-store growth in lifestyle retailing segment hovered around an average 7 per cent in the April-June period of FY2009 (Pantaloon’s financial year ends June 30).
Shopper’s Stop turned profitable in Q1 of FY2010 after posting a loss over Rs 63 crore in FY2009.
“They did a lot of marketing and rebranding exercises last year, but the slower economy still led to lower sales,” a Delhi-based retail consultant said on condition of anonymity.
Source: Business Standard