DQW EXCLUSIVE: Zoom Computers shuts down retail business

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.