K Raheja promoted large format department stores chain, Shoppers Stop, on Monday said it has seen a double-digit same-store-sales growth
ahead of Diwali.
In an interview to CNBC-TV18, Rajiv Suri, managing director and chief executive officer, said, "Our growth for Q2 has been 3.6 percent for like-for-like sales and 7.4 percent as a total. We started July at 7.5 percent like-for-like, August was 10 percent like-for-like, which was offset in September due to the shift in the festive period. Our sales in the festive period have been very encouraging and we did a like-for-like sales of 19 percent growth."
Suri said Shoppers Stop is aiming for a growth of roughly between 5 percent and 6 percent for the year, "Out estimated growth would be around 7.5 percent for last quarter and for Q3 also. Growth will be roughly around 5 percent for the year."
"We are aiming for about 7.5 percent to 10 percent growth in Q3 for a like-for-like basis and it should be double digit for a total growth. The margins – we remain with our guidance that by the end of the year, we will get to 6 percent EBITDA (earnings before interest, taxes, depreciation, and amortisation)," he added.
Speaking about margin guidance of achieving 8 percent EBITDA by 2020, he further mentioned, "We are doing a lot of work towards that. We have invested in the private branch business and had a new and a dedicated management team for that."
"One of our strategies is to increase our percentage of private branch that is currently at 10.3 and is lower than the industry, which is roughly around 20-25. Therefore, our gross margins is lower than the industry. But with these investments, we strongly believe that we will be able to get back to that EBITDA guidance," Suri said.
First Published: Oct 29, 2018 5:13 PM IST