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This article is more than 2 year old.

Diwali brings cheer to retailers despite cautious buying sentiment

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Despite a cautious buying sentiment, large format retailers recorded a high single-digit growth this festive season.

Diwali brings cheer to retailers despite cautious buying sentiment
Despite a cautious buying sentiment, large format retailers recorded a high single-digit growth this festive season. The season, which started on a muted note, saw big buying in the week leading up to Diwali, said retailers. Buying momentum was seen across the board – right from apparels, electronics, consumer durables, consumer goods, as well as homecare.
“We have seen positive growth this festive season. It’s a high single digit growth. Good buying momentum has been seen in categories like apparel as well as homecare products,” said Rakesh Biyani, Joint Managing Director, Future Retail.
In the apparels space, Arvind Lifestyle Brands said the company has seen good growth in premium brands. “We have seen a 10-12 percent growth this festive season. Premium brands like US Polo, Tommy Hilfiger and Calvin Klein have done well,” said J Suresh, MD & CEO, Arvind Lifestyle Brands. Many retailers have seen an increase in the average ticket size in terms of purchases. Diwali 2019 has been better than last year for Trent Hypermarket as well. The company, which runs hypermarket chain Star Bazaar, has seen good growth in the gifting segment and in the ‘value-buying space.’
Demand for TVs, smartphones
In the consumer durables and electronics space, top retailers like Vijay Sales and Croma have seen good year on year growth. “We have seen a 7-8 percent growth this festive season. We saw a drop in purchases of ACs this year owing to the extended monsoon but televisions and smartphones did well this year,” said Nilesh Gupta, MD, Vijay Sales. Croma also saw an 8 percent like-to-like growth with good demand in categories like refrigerators and washing machines.
Retailers said consumers tapped into value packs, discounts, cashbacks and EMIs this festive season. Retailers are hoping that the buying momentum extends till Christmas and end of the year as well.
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