Let’s go to Kathmandu. Gorkha Department Store, once a popular shopping destination in eastern Nepal, has been declining for the last three years.
With a 25-year-old history of inculcating a shopping culture in department stores in eastern Nepal, this department store is shrinking with the presence of Bhatbhateni Superstore in the main urban destinations of the east. As Bhatbhateni’s presence increased, the Gorkha Department could not adopt a new strategy to survive in the competition, as a result of which its turnover points are gradually drying up.
According to rating agency CARE Ratings Nepal, The Gorkha Department last fiscal year 2080. It has earned a total income of Rs 603 million. This is the previous fiscal year 2079. That’s 29 percent lower than 80. In the previous fiscal year, the store’s annual income was Rs 847 million. Even before that, the previous fiscal year 2078. In 1989, its income was close to Rs 1 billion i.e. Rs 912 million.
With the decline in demand, its business has been steadily declining. 2079. 2080 compared to 80. Its interest, depreciation and profit margin before tax deduction stood at 14.93 per cent. It suffered a cash loss of Rs 29 million last year due to interest expenses.
Bhatbhateni added chunaiti:
Not only the popularity of Bhatbhateni Super Store, but also due to adequate parking facilities, food, entertainment facilities and relatively high collection of goods, loyal customers of Gorkha have also stepped into the courtyard of Bhatbhateni. In Itahari, big shopping malls, including cinema halls, have opened with the election of Gorkha Department.
As the urbanization of Itahari, Damak and Birtamode of eastern Nepal is just expanding, gorkha department store has given quality to the residents of the east by opening a super store with a large investment and providing the facility to buy salt to gold under one roof. But in the absence of long-term thinking, the company’s golden history did not last for many years. The biggest drawback of this superstore is the lack of parking facilities at all.
In Itahari, the Gorkha Department Store, which is standing on the busy highway, does not have a courtyard, damak, Pathri and Birat Chowk (Sundar Haraicha) have the same situation. The Dharan branch of Gorkha Department had to be closed within a short time due to lack of expected business. Gorkha Department Store had constructed infrastructure in Dharan with underground parking, assembly hall, banquet and cinema hall in line with the concept of Bhatbhateni Superstore, but could not operate.
In department stores, family members who go shopping on weekends are not only for shopping, but also for food, travel, and entertainment. Although Bhatbhateni Superstore has addressed this desire, the Gorkha Department does not have facilities other than shopping under one roof.
Today’s generation of tanneris or children have started preferring pizza and burgers over samosa and chowmein. Gorkha Department Store has not become the preferred destination for such customers.
Those who want to buy household items for a month with a four-wheeler or buy expensive clothes and jewelry go to other destinations with such facilities due to lack of parking facilities even if they remember the brand of Gorkha Department.
Credit rating:
Care Ratings Nepal has received an AFO rating for 586 million long-term loans, 300 million fund-based short-term loans and 30 million non-fund based loans. This rating indicates that the company’s financial condition is weak.
Care Ratings commented that the garkha department store needs to increase its efficiency to increase its operations in a profitable manner and rationalize current capital requirements. Care Ratings said in a press release that improvements in these aspects will only improve its interest-bearing capacity and solvency indicators.
Anju Acharya Khatri owns the Gorkha Department Store, which has been in operation since 2056 BS. The company has been the sole proprietorship of the Khatri family after the tragic death of the marwari-origin businessman, who was a partner in the Gorkha department in the early days.
