Home / Knowledge / News / Apparel/Garments / Shoppers Stop's HyperCity needs quick revamp
Shoppers Stop's HyperCity needs quick revamp
11
Dec '13
Shoppers Stop’s hypermarket chain HyperCity continues to be a strain on its profitability as it struggles to breakeven against the backdrop of slowing economic growth, rising interest rates, inflation and falling consumer spending.

Led by the huge losses in the HyperCity, Shoppers Stop posted a consolidated net loss of Rs 3.18 crore in the quarter ended September 2013. HyperCity has been eyeing break-even in 2014-15, but that milestone remains elusive, with the retailer posting a net loss of Rs 25.78 crore in Jul-Sep 2013, up sharply from net loss of Rs 21 crore in the year ago period.

A detailed analysis of the financials of the company would show that HyperCity has managed to increase its sales with the help of new stores and rise in customer footfalls, but it is yet to achieve operational efficiency and cost rationalization.

To achieve a breakeven in the HyperCity Retail, the company needs to revamp its in-store product-mix by cutting down low margin products while focusing on high margin goods such as apparels. Revamping the product-mix is essential for the company as its transaction size increased by only 6 per cent during the quarter at Rs 1,061. Conversion ratio also dropped to 41.9 per cent during Q2 FY14 from 43.1 per cent in Q2 FY13.

The company needs to increase the share of fashion products in HyperCity stores as they generally deliver high margins as compared to others such as electronic items. HyperCity’s fashion mix stood at 11.4 per cent at the end of September quarter.

Moreover, focusing on increasing private labels can improve the margins of the company. Private label sales have been increasing rapidly for at least last five years when the global economies hit the recession.

The K-Raheja Group-promoted company will not have a smooth road ahead as the worsening macro-economic scenario could impact consumer sentiments and purchasing power, delaying the breakeven.

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: H&M

Apparel/Garments | On 30th Mar 2017

H&M group's sales increase 7% in 3 months to Feb '17

The H&M group's sales including VAT amounted to SEK 54,369 million...

Textiles | On 30th Mar 2017

Vietnam’s textile & garment exports earn $4bn in Jan-Feb

Vietnam earned $4 billion from textile and garment exports in the...

Textiles | On 30th Mar 2017

India Inc should work for July 1 GST roll out: Fin sec

The Goods and Services Tax (GST) will take India into a very exciting ...

Interviews View All

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search