Key Takeaways
- Major retailers report 12-25% sales growth during Diwali weekend
- Smaller stores face 8-25% decline in sales and footfalls
- GST cuts driving demand for electronics and appliances
- Festive and wedding shopping creating mixed retail trends
India’s Diwali shopping season reveals a stark divide between large organized retailers and smaller stores, with major chains reporting robust growth while independent shop owners face disappointing sales.
Big Retailers Celebrate Strong Festive Sales
Leading retail chains across the country are experiencing significant growth during the Diwali shopping period. Vijay Sales reported a remarkable 20-25% year-on-year sales increase, with director Nilesh Gupta stating he “couldn’t have asked for a better Diwali.”
Lifestyle India recorded 12-18% sales growth over the weekend, while Kalyan Jewellers saw strong buying momentum with 40% of shoppers being first-time customers. Shoppers Stop anticipates continued demand through the Diwali week.
“The momentum that began in Navratri and Dussehra has continued into Diwali. We’ve seen a 20-25% year-on-year sales growth this Diwali weekend and we see this continuing through the Diwali week,” said Nilesh Gupta, director of Vijay Sales.
GST Cuts Fuel Consumer Spending
The reduction in GST rates on several products has significantly boosted sales. At Ahmedabad’s Palladium Mall, GST cuts on TVs, air conditioners and dishwashers from 28% to 18% have pushed up sales of these goods. Refrigerators, washing machines, laptops and mobile phones continue to see strong demand as buyers upgrade their products.
An electronics retailer on Bengaluru’s Brigade Road noted: “Smartphones and electronics at large have seen a rebound post the GST 2.0 announcements, and this Diwali we are anticipating a 5-10% increase in sales compared to last year.”
Small Stores Struggle Despite Festive Season
While malls and large retailers thrive, smaller shop owners report declining business. Shahid Idrisi, third-generation owner of National Wear in Dadar, said: “Yes, the crowds are strong, it being the Diwali weekend. But I haven’t seen as many sales conversions though inquiries are high.”
Nishit Patel, manager of a high-end ethnic wear store in Ahmedabad, reported a 25% year-on-year drop in footfalls, forcing them to offer 5-10% discounts. Similarly, a lifestyle store in Delhi’s Pacific Mall saw a 20% sales drop this festive season compared to last year.
“Our apparel range is priced between `5,000-15,000. Customer demand has fallen. We’ve had to provide 5-10% discounts on our goods,” said Nishit Patel, store manager in Ahmedabad.
Regional Variations in Shopping Trends
The retail picture varies across cities. In Bengaluru’s Forum Mall, a clothing store manager reported an 8-10% decline in sales conversions despite 4-5% improvement in footfalls. Kolkata’s shopping season was affected by relentless rains through September and October, though sales have now picked up.
Smaller retailers are pinning their hopes on the upcoming wedding season, which begins from mid-November, to recover from the disappointing Diwali sales.
