The $364 billion Indian retail industry grew by 10% to 12% during the third quarter of fiscal 2009, as compared to 35% to 38% during the corresponding period the previous year. This is in the wake of the dent in demand witnessed by retailers in the second half of 2008 due to the economic turmoil. In order to clear the mounting inventories, retail majors such as Reliance Retail, Pantaloons, Subhiksha, Big Bazaar, Hypercity, Shoppers Stop, In Orbit Mall, More from Aditya Birla Group, Vishal Retail, V-Mart, Koutons and Cantabil are all planning to run special discounts and freebies for the first quarter of calendar year 2009 across the country. ?With the move, companies will be able to achieve the expected topline growth,? Gibson Vedamani, CEO, Retailers Association of India told FE.
The Future Group has started offering huge discount with the new marketing campaign, ?The Great Indian Shopping Festival? across its varied retail formats such as e-zone, Central, Big Bazaar, Pantaloon with an aim to achieve revenues to the tune of Rs 700 crore. This campaign is expected to end on January 4, 2009. Kishore Biyani, chief executive officer, Future Group, when asked whether the company has been able to achieve the targeted revenues, said, ?We are on track and have witnessed significant footfalls.? However, he refused to divulge details on the revenues that Future Group has achieved so far through the campaign. ?If possible, we may look at continuing the promotion for few more days to clear inventories,? he said.
Mukesh Ambani promoted-Reliance Retail is in the process of evaluating plans to start offering additional 15-20% discounts on apparels through Reliance Trends stores during the initial first quarter of 2009, its officials said on condition of anonymity. Meanwhile, Reliance Fresh has recently started offering discounts of upto 50% on certain branded FMCG products as well. Meanwhile, Koutons is looking at continuing to offer at least 70% discounts on its apparels for the next few weeks. Prinknit with over 125 stores will continue to offer between 20-50% discounts on apparels, said company sources. Not only that, Aditya Birla Retail?s hypermarket, ‘more’ too is looking at extending its discounts schemes to varied products apart from the existing products being offered at 20-30% discounts.
Vishal Retail has nationally launched ?Sabse Bada Tehelka? with offers such as 1 rupaye me dhamakedar offers in categories such as consumer durables, apparels, gift & novelties. Says Ambeek Khemka, its CEO, ?Through these offers, we intend to make customer shopping easy. We hope to achieve expected revenues during the first quarter of 2009.?
Cantabil International which sells Cantabil branded apparels through 1,200 outlets has recently started offering apparels with 60% flat discounts and ‘buy 1 and get 3’ offer on all apparels apart from giving fashion tips to the customers to improve their personality, according to company officials. ?This is to woo customers with maximum discounts and spur volumes during the first quarter of 2009,? officials added.
V Mart with 52 stores in 32 cities with 4 lakh sq ft area brings ?Sabse Sasta, Sabse Achcha? offer to their customers where they give upto 12% cash back on the purchase of over Rs 1,000 single bill.
