The single men were involved in the heart of the Covid-19-Pleite. Some shopping centres were closed before the national blockade started at the end of March. Shoppers Stop Ltd. has suffered more than some of its registered colleagues. The Company’s revenues for the March quarter decreased by 10%. By comparison: Trent Ltd reported an 8 % increase in sales, while Aditya Birla Fashion and Retail Ltd (ABFRL) reported a 5 % decrease.

The strong presence in the mall is one of the reasons why Shoppers Stop was damaged during the quarter, said the analyst, requesting anonymity. For the future: In January-February this turnover increased by 2.4%. In the March quarter, however, this figure fell by 16%, indicating a sharp decline in like-for-like sales in March.

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Graphs : Satish Kumar/Mint

The double clarity of falling revenues and high fixed costs has led to a decrease in marginality. Shoppers Stop lost ₹17 EBITDA growth when adjusted for changes in Indian accounting standard (Ind-AS) 116. Ebitda is profit before tax, depreciation and amortisation. Despite the fact that it was disappointing, customers stopped there better than the ABFRL.

According to calculations by Motilal Oswal Financial Services Ltd., the loss of ABFRL by Ebitda in the quarter of March ₹56.9 was growing due to the high fixed cost structure. However, Trent Ebitda reported profits from ₹2.9 growing on the basis of up to Ind-AS 116, analysts said in a March 16 report. June Motilal Oswal.

Continuing the journey can be difficult for buyers who stop. The situation at the beginning of this quarter would mean that the June quarter would be weaker than the March quarter.

It should be noted that even before the disruption of demand by Kovid-19, Shoppers Stop was hardly able to absorb the improvement in their comparable sales. Shoppers Stop faces strong competition due to the emergence of multinational retailers with attractive prices, said Varun Singh, an analyst at IDBI Capital Markets and Securities Ltd, who also said that shoppers have not been able to establish themselves on the private label front, which generally generate higher profits, added Singh.

As the economy gradually opens up after the blockade, it is difficult to determine how consumer demand will develop. But as income levels fall, optimism on this front dries up. In addition, consumers should not rush into shopping malls for safety reasons. This will keep pedestrians under control for at least the first half of this financial year. From the second half of the festival season, however, some improvement is to be expected, provided Covid-19 doesn’t have any unpleasant surprises in store.

Against this background, it is not surprising that the share of Shoppers Stop fell by 59% compared to the highs of January. By comparison: The shares of Trent and ABFRL decreased by 34% and 52% respectively compared to the peaks of the previous year.

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