Shoppers Stop indicates sluggish fiscal end

Keeping the current adverse scenario in mind, Shoppers Stop’s

Managing Director, Govind Shrikhande has indicated that the same-store sales are likely to experience a sharp fall from 12 per cent to six to seven per cent by end of the fiscal year, along with the entire retail industry witnessing stagnant growth during the next fiscal. He feels, factors like economic slowdown, depreciating rupee and indecisiveness in the manufacturing sector could lead to a slump in like-to-like sales growth. Though sales growth for the quarter ended September 2011 was 12 per cent, the overall sales growth for the fiscal year is likely to drop to around six to seven per cent.

While inaugurating its 49th Shoppers Stop store, Shrikhande also added that the retail sector, which was growing at 20 per cent, is expected to grow at a rate of 10 per cent over the next one year. Shoppers Stop is planning to increase its total number of outlets to 66 over the next couple of years. The company also has plans to invest around Rs 4 billion over the next three years to expand its retail presence by opening new format stores. Besides speciality format outlets like Home Stop and Mother Care, the company also operates Hypercity hyper market and departmental stores under the Shoppers Stop brand.