Spencer's retail business demand for food products remained unchanged during lockdown

The demand of non-essential commodities like general merchandise and apparel was reduced to a very low level.

Jul 22, 2020 09:07 IST India Infoline News Service

Spencer’s Retail Limited informed the exchanges Tuesday that its revenues from non- food merchandise (Apparel, General Merchandise and Electronics and Electricals) has been adversely affected which have impacted its gross margins and EBITDA disproportionately.

The company has adequate financial resources to ensure smooth operations. The company’s liquidity position was adequate.

The company‘s business falls under the category of essentials, accordingly the company operated all the stores during the lockdown period (as per the approved timings of the State Governments) and the company was selling essential and non-essential items as per the orders of the government applicable from time to time.

As the company in retails business which is an essential service. The demand for food products were unchanged. However, the demand of non-essential commodities like general merchandise and apparel was reduced to a very low level.

“Our customer value proposition across segments offers wide range of assortments in hygienic environment along with our various initiatives including ‘Out of Store delivery’ will help us combat this severe economic disruption,” company said.

The company is taking all the necessary steps and precautionary measures to ensure smooth functioning of its operations and to ensure smooth functioning of all its operations and to ensure safety and well-being of all its employees.

Given the criticalities associated with nature, condition and duration of Covid-19, the impact assessment on the company’s Financial Statements will be continuously made and provided for as required, it said.

Spencers Retail Ltd is currently trading at Rs89.95 down by Rs0.55 or 0.61% from its previous closing of Rs90.50 on the BSE.

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