Retailers unsure about business post bumper Diwali

While almost all big retailers are celebrating the boom

in sales during Diwali, they are unsure about the business prospects post festivities. Companies expect the boom to fizzle out once discounts are stopped. Deep discounts by leading retailers had lured inflation-hit shoppers back to big box stores this Diwali.

While Shoppers Stop witnessed its highest single-day sales on the Sunday before Diwali at Rs 21.59 crores, leading a pack of big retailers celebrating the festive mood, others such as Future Group, Wills Lifestyle, Reliance Retail, Woodland and Lifestyle too saw one of their best week ever with consumer sentiments bouncing back this Diwali.

Shoppers Stop also achieved its highest full price sales at Rs 74.53 crores during the last week, 31 per cent more than the previous high of Rs 56.7 crores and Wills Lifestyle reported 25 per cent jump in overall sales, while the company’s same-store sales have increased 15 per cent. After a mundane summer, the industry was hoping for a positive turnaround and with sales of key categories like food, apparel and electronics showing growth of more than 20 to 25 per cent, the overall scenario changed to celebratory mood. But with high inflation and economic uncertainty still looming large, the current buoyancy could be short-lived they fear.