Home Stop looks to break even by the end of this fiscal

Shopper’s Stop is trying to turn around Home Stop, its home solutions retail business

Shopper’s Stop is working on its subsidiary brand Home Stop to turn it around by the end of this financial year. Home Stop has been operational since the past three years.

“We are focusing on Home Stop and we believe that it will turn around by the end of this year. It should break even by the end of this financial year as the real-estate market is slowly reviving,” said Govind Shrikhande, president and chief executive officer, Shopper’s Stop.

He also added, “The home retail segment is one of the toughest categories for a retailer. You need to take care of the timing of entering this segment, examine the situation and judge the market. It is difficult to earn healthy margins from this segment as taxes, transportation and delivery costs are very high.”

Because the real-estate market was in the doldrums for the past 18 months, very few consumers were buying new homes. This directly impacted furniture sales in the home retail market. “Consumers expected a further fall in prices. So we reported subdued sales in the furniture segment over the past few months. But now, at the current rates, a few deals have started happening. We expect our sales also to pick up,” Mr Shrikhande told Moneylife.

He also pointed out that kitchen goods contribute more than 50% of the revenue generated from Home Stop.

“Kitchen goods have given us the maximum throughput in the home category. These goods can even be used as gift items for different occasions (irrespective of the fluctuations in the real-estate segment),” said Mr Shrikhande. He also said that earlier, Indians regarded furniture to be a lifetime investment. However, the mindset is gradually changing and furniture is being replaced in five to seven years, said Mr Shrikhande. — Pallabika Ganguly

 

  • Like this story? Get our top stories by email.

    User 

    We are listening!

    Solve the equation and enter in the Captcha field.
      Loading...
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email

    BUY NOW

    online financial advisory
    Pathbreakers
    Pathbreakers 1 & Pathbreakers 2 contain deep insights, unknown facts and captivating events in the life of 51 top achievers, in their own words.
    online financia advisory
    The Scam
    28 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
    Moneylife Online Magazine
    Fiercely independent and pro-consumer information on personal finance
    financial magazines online
    Stockletters in 4 Flavours
    Outstanding research that beats mutual funds year after year
    financial magazines in india
    MAS: Complete Online Financial Advisory
    (Includes Moneylife Online Magazine)