(Reuters) – India’s Shoppers Stop reported a loss for a second straight quarter on Tuesday, as high inflation led customers to cut back on discretionary spending.
The department store chain saw subdued demand during the second quarter due to fewer wedding dates, extended rains and overall weak discretionary spending, its CEO Kavindra Mishra said.
Due to inflation concerns, consumers are prioritizing essential goods and reducing spending on non-essential items like apparel. India’s retail inflation, which initially eased year-on-year in July, accelerated in August and September.
The company posted a consolidated net loss of 205.9 million rupees for the quarter ended Sept. 30, compared with a profit of 27.3 million rupees a year earlier.
Shoppers Stop’s beauty and personal care (BPC) segment, which makes over a fifth of its revenue, however, saw a 10% rise in sales.
India’s BPC market, valued at around $28 billion in 2023, is expected to reach nearly $47 billion by 2032, as per a report by market research group IMARC.
Overall revenue from operations rose 7% to 11.15 billion rupees. Shoppers Stop houses products ranging from Vero Moda clothing to Michael Kors watches.
Shoppers Stop’s larger rivals Tata Group-owned Trent, Arvind Fashions and Aditya Birla Fashion and Retail have not yet reported their results.
(Reporting by Ashna Teresa Britto and Manvi Pant; Editing by Vijay Kishore)
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