Independence Day consumer sentiment breaks free of slowdown

economictimes.indiatimes.com:

Independence Day sales from last year's levels, industry executives said. Attractive offers and new movie releases lifted footfall in malls by 15-20%, driving sales of eateries and other stores such as apparel and fashion. Executives said the robust buying signals a significant improvement in consumer sentiment just ahead of the crucial festive season.

The country's largest retailer, Reliance Retail, posted over 25% on-year growth in sales of electronic products at its Reliance Digital chain, boosted by smartphones and other high-ticket items such as television sets and refrigerators. Electronics retailer Vijay Sales, which operates 127 stores, reported similar growth. «There was a 10-12% jump in volume sales growth, or numbers of units sold, and average billing value went up by 5-7%,» said its director, Nilesh Gupta.

«This indicates consumers are upgrading, which is a positive sentiment before the festive season.» A Reliance Retail spokesperson said Independence Day purchases surged across consumption baskets, propelled by expansive product selections, omnichannel accessibility and competitive pricing. Consumption slowed since last Diwali due to high inflation, poor sentiment and job losses in some sectors. It started to improve on-month from June.

Consumer goods companies expect sales to gain pace as the festive season gets underway in the next few weeks. New smartphone models launched by Oppo, Samsung and Xiaomi, as well as offers in electronics, instalment schemes and bank-led instant discount programmes drove sales.Big-ticket sales events Grocery retail chains reported a 25-30% rise in business from the year earlier. Several malls and stores opened early on August 15 and planned to close late amid high footfall.