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| Diwali surge in sales cheers retail chains |
| Raghavendra Kamath / Mumbai Oct 22, 2009, 00:58 IST |
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Sales during Diwali have set cash registers of retailers ringing, with some of the biggest ones such as Kishore Biyani’s Future Group, Aditya Birla Retail and Spencer’s Retail beating their own targets.
Retailers were expecting 10-25 per cent sales growth during this Diwali season compared to that of 2008, which saw a mere 5-10 per cent increase. In the preceding year, sales during Diwali went up by 100-200 per cent.
The Future Group, which has the country’s largest retailer, Pantaloon, has crossed its targeted 24 per cent increase in sales during Diwali. “Consumer sentiment looks very positive and there is good traction in sales,’’ says Rakesh Biyani, chief executive, retail, Future Group.
Ditto for Aditya Birla Retail, which has seen a 25 to 30 per cent growth in Diwali sales numbers. “There is good growth across all categories. The offtake is very good in our hypermarkets for categories such as consumer durables, apparel, food and furniture,’’ says Thomas Varghese, chief executive of the Aditya Birla Group.
RPG’s Spencer’s Retail has also crossed its target of Rs 100 crore for Diwali sales, with electronics goods comprising 50 per cent of its revenues.
Big-ticket items such as consumer durables and furniture were hit hard during last year’s downturn, as consumers postponed their purchases or downtraded to save cash.
The better than expected sales in Diwali has prompted retailers to say that November and December will be much better for them compared to the same period last year. October to December are crucial for retailers, as these months contribute 40 per cent of sales of apparel and electronics.
“If Diwali numbers are any indication, then November and December will be significantly better this year,’’ says Biyani.
Last year, the slowdown in the economy intensified after Lehman Brothers’ collapse in September, which impacted retailers’ sales negatively.
Some retailers are cautious, given the current economic conditions. “It is just a pre-Diwali affair. If 50 weeks go flat and there is a jump of five per cent, they cannot be determining factors for the future, “ says B S Nagesh, vice-chairman of Shoppers Stop.
Aditya Birla’s Varghese also says the period of intense shopping during the festival seems to have contracted, which could have a bearing on overall numbers.
(with inputs from Pradipta Mukherjee)
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