End of season sales get a tepid response from buyers

Warm winter spell in the North has dampened sales of winter wear this year. And now even end of season sales are not showing promising results. Compared to last year, sales are down by almost 20 per cent. Across Delhi, retailers echo the same sentiments. In fact, the unusual weather conditions have heavily impacted the sale of woolen garments in Northern India as retailers rue the warm weather. Experts say sale is down by almost 40 per cent this year.

Warmer winter, cold sales

An unusually warm winter has seen a dip in demand for woollens. Delhi, which is a major market for winter wear, hasn’t found too many takers for jackets, coats, pullovers etc. this season. The end of the season sale also had to be extended because of warm winter. As Dipak Agarwal, former chief executive of DLF brands says that retailers had to go on an early sale because of the weather. Delhi alone accounts for ‘30-40 per cent sales during winter but this year irreparable damage has been done’. Last year, despite heavy discounts on online portals, brick-and-mortar stores had done brisk business because of a long cold spell in North India.

Odd-even doesn’t favour sales

Even though sales started early as compared to last year, they haven’t picked up. Most retailers blame the weather but many feel that the odd-even car scheme launched by the Delhi government, which entails that odd number cars will be allowed on Delhi’s roads on odd number days and vice versa, on January 1 this year has also played spoilsport. People are not too keen to visit malls and avail of discounts. As Abhishek Bansal, executive director Pacific Mall in West Delhi points out, most car people prefer to come to the malls in their cars. But the odd-even car scheme has forced them to stay put at home, thus reducing the footfalls in the mall. ‘Odd-even is not good for malls’ he says.

In addition, many believe that a slow economy and real estate have impacted people’s spending power. But the scenario is not so grim in rest of India. Govind Shrikhande, MD, Shoppers Stop says that sales are going fine in rest of the country, only Delhi is affected in a big way. And this impact cannot be ignored as Delhi is a huge market.

However, some are hopeful still. Sales have just begun, they say, and there are a few weeks to go before this end of season sales can be written off as a failure this year.