Muted festive season sales fail to light up Diwali for many shopkeepers

Hit hard by inflation, low-income groups have been cautious about spending this festive season

Though Delhi has been witnessing mammoth traffic snarls in the run-up to Diwali, and many believe that they are due to people going all out to shop for the festive season, shopkeepers say that the crowds have not translated into sizeable footfalls this year. They feel that the loss in sales is due to inflation and the post-Covid economic scenario.

Sixty-year-old Mohammad Sijad, a shop owner in Meena Bazaar, opposite the Jama Masjid in Delhi, says that the rising cost of consumables and other goods has made it difficult for people to splurge during the festival season. “Sales have been muted. People are being cautious about spending as they have seen how Covid can affect their lives. The rising prices have added to our misery,” he says.

Manzal Imam, who runs a shop nearby, agrees. “This month has two festivals — Dussehra and Diwali. Most people bought everything when they went out to shop earlier this month. Besides, the products we sell mostly cater to low-income groups. People earning around Rs 15,000-20,000 per month cannot afford to go on a shopping spree twice in the same month,” he says.

Surveys show that Covid-19 has widened the gap between the rich and the poor. Consumer-goods makers are reporting robust demand for items priced nearly $2,000, while industry data on sales of budget phones priced below $100 and motorcycles, an indicator of rural demand, are showing a weaker trend. Again, a survey by LocalCircles, an online community of citizens, said that one in three households planned to spend over Rs 10,000 this festival season.

And yet, shopkeepers have a different story to tell. Bablu, who owns a shop in Delhi’s Janpath Market, says that till 2019 crowds were so large during the festival season that they had to request the police to block the entry to the marketplace. “Earlier, we didn’t have time to breathe. People used to throng the markets at this time. But this time, other than the occasional tourist, we have hardly had any customers. Inflation has eaten into their pockets,” he says.

A similar script seems to be playing out in other cities as well. Mayank Keswani, a shop owner in Lucknow’s Hazratganj market, says that the pandemic changed the way people shop and spend their money. “Sales are down from the previous years. Though it’s good to see people coming out to celebrate Diwali after two years, the sentiment has changed. People prefer shopping online now.”

For some though, the season has brought in a sense of optimism. Pal Singh, the owner of a clothes store near Red Fort in Delhi, says that even though sales are less than what it was before the pandemic, the numbers have improved from last year. “The past few years have been difficult. First, the renovation (redevelopment project at Chandni Chowk) here disturbed tourists. Then, Covid struck and everything went haywire. Now, with the festival season, we are seeing 50 per cent more sales compared to last year, although we barely saw any sales in 2021. People shifting to online portals have also hurt our sales,” says Singh.

Puneet Goel, who runs a light shop on the same street, adds that the festival rush and upcoming wedding season have improved prospects for his business. “We have a positive outlook and expect our business to grow by 20 per cent. People are coming out to shop and buy lights for the first time in three years. They’ll do the same during the wedding season. They want to make up for lost time,” Goel says.

Balwinder Singh, another shopkeeper, is staring at the possibility of running into losses for the third consecutive year. Reminiscing about pre-Covid days, he says, “People don’t have money to spare. Our sales are down by nearly 90 per cent. Our main customer base used to be either the low-income groups or college kids with limited money to spend. Now, the college kids have moved on and the low-income groups are saving up, fearing another lockdown.”

He adds: “I have been running my shop for the past 22 years. Back then, I used to complain that I hardly got to spend any time with my family. Now, because business is so bad, I get to spend a lot of time with them. But I miss the other family I didn’t realise I had — of customers.”