India's leading department store chain, Shoppers Stop, reported a second consecutive quarterly loss. The company attributed the decline to a combination of factors, including high inflation, reduced discretionary spending, and fewer wedding dates.
The department store chain's CEO, Kavindra Mishra, noted that subdued demand during the second quarter was primarily due to extended rains and a weak consumer sentiment. Rising inflation has forced consumers to prioritize essential goods, resulting in reduced spending on non-essential items such as apparel.
Despite the overall downturn, Shoppers Stop's beauty and personal care (BPC) segment continued to show growth, with sales increasing by 10 per cent during the quarter. This segment, which contributes over a fifth of the company's revenue, benefits from the growing Indian beauty market, which is expected to reach nearly $47 billion by 2032.
Overall, Shoppers Stop's revenue from operations rose 7 per cent to 11.15 billion rupees. However, the company's net loss for the quarter ended September 30 amounted to 205.9 million rupees, compared to a profit of 27.3 million rupees a year earlier.
As the Indian retail landscape continues to evolve, Shoppers Stop and its competitors are facing increasing pressure to adapt to changing consumer preferences and economic conditions.
