Shoppers Stop riding a growth wave

Monday, 03 January 2011

Shoppers Stop expects higher sales growth in the second half of this financial as consumers loosen their purse strings and on the back of strong festive season sales. In October-December, the   department store expects sales to grow 30 per cent from a year earlier aided by festive season buys. The managing director of Shoppers Stop, Govind Shrikhande says Oct-Dec is one of the best quarters they have witnessed in the last couple of years. Both Diwali and Christmas sales were as per their expectation. Similarly they also expect strong sales growth in Jan-Mar.

Shoppers Stop had set itself a target of 25 per cent sales growth in this financial ending March. The company expects to maintain its earnings before interest, taxes, depreciation and amortisation margins at eight per cent despite rise in input costs. They have increased their average selling price by eight per cent to offset impact of higher input costs on its margins. For Jul-Sep, Shoppers Stop's net profit was Rs 174 million, up 44 per cent from a year ago. The gross retail turnover at Rs 5.09 billion was up 23 per cent, while same store sales grew 13 per cent compared with 2.3 per cent a year earlier on higher spending. The earnings before interest, taxes, depreciation and amortisation at Rs 382 million in Jul-Sep was up 48 per cent. In 2010-11, the company opened four of the planned eight stores. Moreover they plan to add the remaining four stores by March. The company plans to add eight stores each year for the next couple of years. It currently operates 34 stores across the country.

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