Consumers flock to shops for pre-GST discounts

Will prices go up after GST kicks in? By when do I need to buy to avail the special discount? These may be among the tonnes of questions being hurled at the sales personnel manning consumer durables stores across the country these days. As consumer durable distributors, dealers and retailers try to clear old stocks before the goods and services tax (GST) kicks in from July 1, unusual discounts galore the shop floors.
 
On a Saturday afternoon, Business Standard hit retail floors across east Delhi’s Laxmi Nagar to Preet Vihar to capture the festive mood that has been advanced this year due to the GST.
 
Armed with detailed information on discount rates across local shops, consumers are flocking durable outlets despite the unpleasant weather to grab air conditioners (ACs), refrigerators or washing machines. From a family of four to students preparing for company secretary exam, the large format Navrang Audio and Video outlet in the locality is observing extraordinary crowd. “Starting last Sunday, we have been running special offers like free stabilisers or free installation with ACs. This is a pre-GST stock clearance sale,” he said. He had to stop midway from explaining offers that were being negotiated with companies for the coming week, as a young couple wanted to know whether they were still offering a 30 per cent flat discount on ACs.
 
Pankaj Electronics, behind the Laxmi Nagar metro station, has stopped offers as it has run out of old stocks after it sold them for 30-50 per cent discount. “You are late. The scheme was ended on Thursday as we have run out of stock,” the sales executive on the floor announced to enquiring customers.
 
Traffic of prospective buyers and window shoppers is at least 15 per cent higher at the Reliance Digital outlet at Nirman Vihar’s V3S mall. Store manager Parminder Singh likened the crowd at the store with that during festive sale season. “This month’s sales figures should be unprecedented. Consumers are aware of the prospective price hikes from July and discounts that we are offering varies from 10-50 per cent. Also, the onset of a new academic year boosted sale of laptops, PCs and printers,” he said.
 
According to Sahil Gupta, store manager at the Vijay Sales outlet in the Preet Vihar area, footfall has gone up by up to 25 per cent since the special stock clearance initiative started. “While we see a slight rise in footfall during the end of season sales every year, this year, footfall went up much higher than average. GST may lead to a rise in prices of several items and, thus, we had to clear old stocks. Sales have also gone up by over 20 per cent this month,” Gupta added.
 
The store is offering up to 50 per cent discount on all major appliances, but Neeru Bhatia is disappointed. A fashion designer by profession, Bhatia could only manage to visit the store in the weekend to find out that the frost-free refrigerator model she chose had been sold off. “It’s out of stock. We would have purchased it even if there was no special discount,” she rued.
 
Meanwhile, Gaurav Tripathi from New Ashok Nagar was disappointed over lower rates of discounts than what he expected. Tripathi, who wants to buy a water purifier, was hoping to grab one at half the usual price. But as older models were sold off, he could only manage a 28 per cent rebate.

BUYERS FEAST BEFORE GST

• Footfalls rise 30% at large-format consumer durables outlets at east Delhi
• Sales may go up this month to unprecedented 25% level 
• Retailers offering up to 50% discounts on old stocks