Retailers expect festive boost after high inflation, elections hurt sales

livemint.com:

₹9,879 crore. The first six weeks of the quarter that included Akshaya Tritiya saw 20% retail growth. However, a steep rally in gold rates, election-led restrictions in many markets, very few wedding dates and an unprecedented heatwave across the country hurt the overall consumer demand during the quarter, Titan said in its earnings announcement.

Venkataraman said volatility in gold prices is always an immediate challenge. “Once prices stabilize customers flock to stores and we are hoping that will continue to happen," he said. Meanwhile, severe heatwaves in many parts of the country coupled with the general elections also adversely impacted footfalls in stores earlier this year.

“This probably got people to stay indoors—as a result demand has not been vibrant. However, June was better than July as retailers went on sales a little early. We feel people will want to come out in the second half.

Ganesh Chaturthi onwards we do expect a resurgence in demand and footfalls," said Pushpa Bector, senior executive director, head of luxury and shopping malls, DLF Retail. Bector expects demand to be up double-digits this festive season compared to a year ago. However, Bector's portfolio covers the more premium end of the consumption basket.

Consumption at the bottom of the market still remains weak. However, an above-normal monsoon and moderating inflation could aid demand this quarter ending September. Wholesale inflation, which surged to a 16-month high in June, cooled in July, Mint reported earlier.

This was on account of low food prices and primary articles. Food inflation, a major contributor to the index, fell to 3.55% in July after climbing to 8.68% in June from 7.75% in May. "While the festive season does stimulate