Shoppers Stop share price cracks over 11% as firm’s MD, CEO Venu Nair resigns
Shoppers Stop share price: Shares of Shoppers Stop hit their 52-week high of ₹889.75 on BSE on August 9, 2023. As of August 24 close, the stock has gained 14.5 per cent in the current calendar year so far against a 7 per cent gain in the equity benchmark Sensex.
Shoppers Stop share price cracked over 11 per cent in morning trade on BSE on Friday (August 25) a day after the company said the company's managing director (MD) and chief executive officer (CEO) Venu Nair resigned from his position. Shares of the company opened at ₹799.85 against the previous close of ₹811.45 and plunged 11.34 per cent to the level of ₹719.45 in trade soon. Around 11:45 am, the stock was trading at ₹724.65, down 10.70 per cent, on BSE.
In a regulatory filing on Thursday (August 24), said, "Venu Nair, Managing Director and Chief Executive Officer of the Company, has tendered his resignation, effective from the close of business hours of August 31, 2023, due to personal reasons."
Additionally, the company said the board of directors of the company approved the appointment of Kavindra Mishra as an additional director of the company with effect from September 1, 2023.
"He has also been promoted from his position as Chief Commercial Officer and CEO – Homestop to Executive Director & Chief Executive Officer of the company for a period of three years effective September 1, 2023, subject to the approval of shareholders of the company," said the company.
Shares of Shoppers Stop hit their 52-week high of ₹889.75 on BSE on August 9, 2023. They hit their 52-week low of ₹574.85 on April 18, 2023.
As of August 24 close, the stock has gained 14.5 per cent in the current calendar year so far against a 7 per cent gain in the equity benchmark Sensex.
In Q1 FY24, Shoppers Stop reported a profit after tax (PAT) of ₹13 crore. The company achieved strong Average Transaction Value (ATV) growth of 8 per cent by focusing on premiumization across various categories.
Read more: Shoppers Stop Q1 results: Reports strong Q1FY24 results, with 8% ATV growth and expansion of brand
Last month, Mint reported that Shoppers Stop is set to expand its value format chain Intune to 10 stores from the existing three, to compete with major players like Trent’s Zudio and Reliance Trends, strategically targeting the lower-end segment of the apparel market in India.
“It is a small trial that we’re doing into that segment. The logic behind it is if you see the market, tier-2 and tier-3 form the biggest part of the pyramid in terms of retail sales, and if you add to it the unorganized market, it is over 70%. Now, in the last 10-15 years, we have seen the unorganized market moving into organized, typically at the bottom end of the pyramid. Hence, the opportunity for brands to grow in that segment is the prime driver,“ Mint quoted the managing director and chief executive of Shoppers Stop, Venu Nair, saying so.
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