Extended discount sales spiked-up volumes: Shoppers Stop

At a time when most retailers are suffering from sluggish growth, Shoppers Stop reported a standalone sales turnover of Rs 725.16 crore and a net profit of Rs 9.92 crore for the quarter ended Sep '13. Other income for the quarter was Rs 3.27 crore.

Second quarter volume growth of 9 percent was on back of good sales in August and a ten-day extended July discount sale period, says Govind Shrikhande, MD, Shoppers Stop. The company was also able to control costs in spite of adding 7 stores. The like-to-like cost growth dropped by almost 30 basis points, he adds. Also read: Pantaloons Q2 net loss at Rs 43.5 cr “Normally a discount sale period impacts margins dramatically, but this year we have seen that apparel sales, which grew very well both in volume and top-line actually helped the bottom-line as well," says Shrikhande. Therefore, according to him a good top-line growth, 30 basis points margin growth and drop in costs helped EBITDA jump by 60 basis points. Shrikhande feels, it was a good performance by the team that reflected in the top-line as well as bottom-line.