High street rules Diwali shopping as consumers step out cautiously

Buyers cautiously stepping out, not seen spending much on apparel

The saleswoman at a popular departmental store on Hill Road in Bandra (Mumbai) is trying hard to push a new set of tops to women gathered at the counter. The weekend before Diwali has seen some footfall and she wishes to take full advantage.

Outside the store, though, the picture is different. There are crowds milling around, hawkers selling street wear, and stand-alone shops inviting last-minute buyers. Business is back, but only in pockets, as consumers step out cautiously and retailers seize the opportunity.
 

A study by the Retailers Association of India last month had noted that shopping at high street would gain pace during Diwali, as opposed to malls and shopping centres. Like in Mumbai’s Hill Road, Bengaluru’s Commercial Street mirrors the trend of avid shoppers and excited retailers.
 

“Close to 80 per cent of the people coming to Commercial Street are serious buyers who know exactly what they want,” says Mayank Rohatgi, secretary of the Commercial Street Association.
 

At Brigade Road, also in Bengaluru, goods like television sets and Sony play-stations are seeing good traction.
 

“My business has grown 40-50 per cent in a month. We have sold 150 TV sets, 40 home theatre systems, and have a wait-list of 400 bookings for the Sony Playstation 4, because of short supply,” says Suhail Yusuff, secretary of the Brigade Shops & Establishments Association.
 

While Mumbai and Bengaluru’s high streets are seeing crowds make their way back, albeit for festive and wedding shopping, this is not the case in Chennai, Delhi and Kolkata.
 

Arvind Singhal, chairman of Technopak, says retail activity needn’t be uniform across cities and store formats. That seems to be true here.
 

Chennai’s T Nagar wears a deserted look. So do Delhi’s Lajpat Nagar Central Market, Amar Colony, and Bhagirath Palace, where retailers are quite literally counting their losses.
 

“Fear of the pandemic continues to impact footfall. Further, people are less likely to spend money on apparel,” says Ramlal Aggarwal, who runs a 50-year-old shop in Lajpat Nagar Central Market.
 

According to Tarandeep Singh, owner of a wholesale business and resident of Amar Colony, at least 25 per cent of businesses are yet to restart, following the lockdown in April-May.
 

“Sales have been very weak so far — somewhere ranging from 40-60 per cent for most of us. Demand from retailers has plunged since last year. Moreover, many of them who don’t have access to their own vehicles are unable to make it to their shops,” he says.
 

In Kolkata, people generally throng malls for Diwali shopping. But this year, the ample parking space outside South City Mall was a sign of business not being as usual.

While stand-alone shops and street-side vendors are bustling with customers. Photo: Viveat Susan Pinto

 

Inside, the crowd is as thin as it would be during a mid-week afternoon. “About 45 per cent of the premium audience hasn’t stepped out. This was the last weekend before Diwali and customers are coming in; we have also got enquiries on safety,” said Man Mohan Bagree, vice-president of South City group. South City houses retailers like Zara, Marks & Spencer, and Calvin Klein, among others.
 

At Quest Mall — which has luxury brands like Burberry, Gucci, Canali, Emporio Armani, Tumi — the scene is no different. Yes, footfall has picked up since June-July, but it’s not normal yet.
 

“We are gaining momentum, but I need more people to come out. Cinemas have opened and so have restaurants. But people are not confident enough,” says Sanjeev Mehra, vice-president of Quest Mall.
 

If the footfall in July at Quest was 150,000, it’s about 450,000 now — a far cry from pre-Covid levels. October sales have been good, though, explains Mehra.
 

Conversion ratio of footfall-to-sales has been nearly 100 per cent, implying that only those craving their favourite brands have trooped in. Impulse buyers have maintained their distance.
 

The same goes for South City Mall, where the conversion ratio is at 60-70 per cent. Bagree says: “Conversion ratio has been good because footfalls have dipped since last year. But those coming are intent on buying. So sales are high from that perspective, at 70-80 per cent from last year.”
 

In Chennai, D Hariharan, treasurer of Pondy Bazaar Merchants Association, says business has reached just 40-50 per cent of what it was last year, aided largely by the festive season.
 

Retailers say a delay in resumption of suburban train services has not allowed T Nagar to bounce back. Almost 70 per cent of T Nagar’s business is fuelled by shoppers from Chengalpettu, Kancheepuram, and Tiruvallur districts.

For now, retail activity is a crawl.