PM Narendra Modi’s demonetisation move is being lauded as well as criticised. PM Modi asked for 50 days from the people for the situation to get normal. It’s been more than a month and people still seem to be struggling. However, Kishore Biyani, Founder and Group CEO, Future Group said that the first 10 days of December have been very good. In an interview with ET Now he said, “I did not see any reduction in growth in staples business. Home Town suffered in first 1.5-2 weeks but it is meeting targets now.” “Cashless transactions are at about 18% of total sales and I have not seen any drop in business of premium brand, Foodhall,” he added. Tier-2, Tier-3, non-agrarian towns are doing reasonably well, he quipped.
Recently, Big Bazaar announced that all its stores, along with fbb stores will be enabled to allow customers to withdraw upto Rs 2000 from their own bank accounts, using their Debit/ATM cards. On the first day of cash dispensation the company saw around 50,000 transactions conducted, said Biyani. In an interview with CNBC-TV18 he said that modern trade has been doing really well and same store sales jumped to 40 percent on Thursday. After the first days of demonetisation sales picked up and the company saw a sales growth of around 20-50 percent in last two weeks, he said. Biyani said that the usage of debit card payment has increased significantly and contributes to around 50-60 percent of sales.
He said that cash transactions fell to 8 percent after November 8 but it has steadily increased to around 20 percent of sales currently.