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If end-of-season retail sales in July had begun with an enthusiastic 40 per cent increase in footfall, it closed with a more rational 10 per cent jump compared to other times.
Many retailers saw consumers turning cautious by the end of August or early September, reflecting the overall sentiment. Also, the peak festive season of Dussehra-Diwali is round the corner, for which shoppers are saving in a slow economy, experts said.
The end-of-season sale starting July ended for all brands in the first week of September. Many closed sales early as compared to last year. Even stores that have sales for a comparatively longer time had new autumn merchandise arriving early.
The 40 per cent rise in sales in the initial weeks sustained for lead stores like Lifestyle, Zara and Mango but dropped to 20-25 per cent for smaller stores and then ended at around 10 per cent up.
Analysts attributed the retail rush to people moving towards modern retail in a big way and their increasing interest in brands. “More people are associating with modern retail even in tier-II cities,” said Pinaki Ranjan Mishra, partner, retail & consumer products, EY (earlier Ernst & Young).
Another striking feature has been a smarter consumer, choosing deals and discounts; sheer publicity isn’t enough. If there is limited stock on sales with not too attractive discounts, the brand has seen a dip, says Abhishek Bansal, executive director, Pacific Malls.
Puma Sports managing director Rajiv Mehta believes while the end-season sale in July was good, August was slow. “The season launch is always low because people have just shopped a lot and, besides, it is just before the festive season, so people are saving for that. But, it's lower than what we expected,” he said.
However, according to Rishi Vasudev, chief operating officer at the tailored clothing and sportswear division of Arvind Brands, "The sale period has been very good.” That includes the August sale, with important dates like the Independence Day weekend, Janmashtami and Eid. “We haven't been seeing any cutback in spending yet but it’s there at the back of our mind,” according to Vasudev.
Online portals were there, too. Richa Kar, chief executive officer of Zivame.com, pointed at a 40 per cent rise in visitors during the end-season sale.
Anurag Rajpal, director and CEO, The American Swan Lifestyle Company, agreed. “We saw a heartening response. In fact, August marked our best performance since our launch in January,” he said.
Now, over to another round of festive discounts!
