Moneycontrol

Budget 2023Budget 2023

PARTNERS

  • Tata AIA Life Insurance
  • Hafele
  • Motilal Oswal
  • SMC Global Securities Limited
Live: LIVE: Closing Bell
Budget 2023
Budget 2023

This week in retail: As COVID-19 pandemic impacts footfalls, retailers project recovery in Q2FY22

Department store chain Shoppers Stop and apparel retailing major ABFRL have reported a decline in sales from March-end onwards.

May 30, 2021 / 01:02 PM IST
Retail Sector | Representative Image (PC-Shutterstock)

Retail Sector | Representative Image (PC-Shutterstock)

Retailers are staring at a bleak first quarter in FY22 even as states like Delhi ease lockdown restrictions. Grappling with low footfalls and waning demand, the industry is hopeful to witness recovery from the second quarter onwards with the onset of the festive season. Though the retailers had witnessed recovery in the fourth quarter of FY21, the recent set of restrictions have again derailed this growth.

Losses narrow in Q4

Shoppers Stop posted its best quarterly result of FY21 in the March quarter as COVID cases subsided and footfalls improved in stores. Its sales recovered to 90 percent of the Q4FY20 levels. The company narrowed down its losses to Rs 24 crore in Q4 as compared to Rs 127 crore in Q4 FY20. Its net sales declined 6.1 percent in Q4 to Rs 680.46 crore from Rs 724.38 crore in Q4 of FY20.

Earlier this week, Aditya Birla Fashion and Retail (ABFRL) registered a 51 percent jump in its earnings before interest, tax, depreciation, and amortisation (EBITDA) at Rs 253 crore for the fourth quarter ended March (Q4) as against Rs 167 crore in the corresponding period last year. The company’s revenue in Q4 stood at Rs 1822 crore, marginally below Rs 1832 crore from a year ago. Its net loss stood at Rs 196 crore in Q4 as compared to Rs 147 crore net loss during the corresponding period last year. The company informed this included a one-time tax impact of about Rs 109 crore.