The slowdown in consumer spending has made a chilling effect on Mumbai based Zoom Computers and Technology, which was planning to come up with more 5 retail outlets. Currently, scuttling its earlier plans, it has closed down its retail outlet at Lamington Road. Speaking exclusively to The DQ Week, Mandeep Singh, CEO, Zoom Computers and Technologies informed, "We have closed our retail outlet because of the weak consumer spending on computer peripherals. This led to the condition that we were unable to pay the rent of Rs 3 lakh for the store."
Explaining the scenario all because of the ongoing recession, which has resulted in the drop of the footfalls and dragged down overall operating margins of the company. Hence, we have taken a cost-cutting approach by shutting down our underperformed retail business operation."
According to Zoom Computers, the decrease in the hard drives prices has also attributed to the under-performance of its retail business. The company saw a loss of around 20-25 lakh in its retail business. Singh said, "We could not compensate the loss in our retail business, and now we are only focusing on our distribution business in Chembur and Malad."
Despite all the odds, Singh is still confident to gain back the momentum in its retail business. "Closing under-performing stores happens all the time, but I am really looking ahead to come back in retailing with more retail store openings in 6-7 months," he added.