12% sales growth targeted by Shoppers Stop
Popular retailer Shoppers Stop Ltd. is looking at 12 per cent sales growth in 2017-18 and focusing on improving the profitability, company sources said.
“For the entire year, we are looking at 12 per cent overall sales growth and the profitability growth should be double of the sales growth bottomline of which should be 25 per cent,” company’s managing director Govind Shrikhande has said.
He said the retailer was eyeing 8 to 10 per cent like-to-like sales growth in the current fiscal.
“We drive the profitability in a bigger way and are looking at increasing productivity in the existing stores,” Shrikhande said.
Retailer omni-channel execution was on track to be ready by the third quarter and the retailer had envisaged an investment of Rs 60 crore for the project.
He also said the retailer posted a 20 per cent like-to-like sales growth in the first quarter of the current fiscal.
“Out of the 20 per cent growth, it has achieved 10 per cent sales growth in April-May period and additional 10 per cent in June because of preponement of sales due to Goods and Services Tax, Shrikhande said.
Post-GST, a slowdown in sales in July was witnessed due to “affected supply” but in August the recovery had already started and in the first quarter, it witnessed a 22 per cent overall sales growth. The retailer which has currently 79 operational stores across India, is targeting to open four-five more stores in the remaining period of the current fiscal.
About the Company’s performance, he said, “We will be back on profit track from second quarter onwards.” It has plans for a Rs 100 crore capital expenditure in the current fiscal.
Its online sales growth in the first quarter was around 70 per cent and betting big on omni-channel, the retailer was expecting online sales to grow by 100 per cent in the fourth quarter of the financial year.
“Our target is to achieve 10 per cent (online sales’ contribution to overall revenue) over the three years’ time,” Shrikhande added.
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