Following a period of reduced consumer spending, retailers in sectors like clothing, fashion, electronics, and food & beverages have found cause for celebration with the commencement of Independence Day Sales on Friday. This event has elicited a positive response from customers, with over a dozen brick-and-mortar retailers, brands, and restaurants reporting an increase in sales of at least 15-20% compared to the previous year during the weekend from Friday to Sunday. The upcoming Monday and Tuesday, which coincide with Independence Day and a national holiday, are expected to contribute further to the surge in sales.
The majority of retailers anticipate a sales growth of around 25-30% during this five-day period (Friday to Tuesday) compared to the previous year. This growth is notable considering the recent moderation in sales due to inflationary pressures and uncertain weather conditions.
Several factors have contributed to the success of this Independence Day sales period. Firstly, there was pent-up consumer demand resulting from a reduction in non-essential spending. Secondly, attractive offers and discounts have played a role in enticing buyers. Lastly, the extended weekend has also contributed to the favorable sales figures. According to Jaydeep Shetty, a retail expert and consultant based in Mumbai, these factors combined have led to the observed surge in sales.
Kumar Rajagopalan, CEO of the Retailers Association of India (RAI), expresses optimism about the sales momentum and views this sales period as a potential catalyst for a robust retail season starting in mid-September. Retailers have strategically stocked up on merchandise to offer customers appealing discounts and a wide range of choices across various product categories.
Nilesh Gupta, director of Vijay Sales, an electronics retailer with locations in western and northern India, remarks on the relief felt by retailers due to the increased foot traffic in stores after a challenging summer season. Gupta expects a year-on-year sales growth of 20-25% during the period from Friday to Tuesday, driven by substantial discounts of up to 75% on select items, cashback offers, new product launches, and aggressive financing options as part of his chain’s Mega Freedom Sale.