Independence Day Discounts Fuel Retail Sector Growth

Independence Day discounts have significantly boosted India's retail sector, with an 8-10% year-on-year increase in footfalls and sales across major shopping destinations. This revival in demand, especially in the entry-to-mid segment, has sparked optimism among industry executives for a strong festive season ahead.

Electronics and Groceries Lead the Charge

Electronics, particularly in affordable categories, alongside groceries and apparel, have seen healthy growth. Restaurants are also reporting higher sales, benefiting from increased mall visitors, new film releases, and a surge in in-home dining orders.

Executive Insights on Sales Growth

"After several months, there is good demand for entry to mid-segment products," said Nilesh Gupta, director at electronic retail chain Vijay Sales. He noted an over 8% jump in sales value compared to last year, signaling a positive trend.

E-commerce and Mall Traffic See Significant Uptick

On the e-commerce front, Tata-owned BigBasket reported a 42% on-year jump in patriotic merchandise sales. Malls recorded a surge in traffic during the long weekend, with theaters experiencing back-to-back housefull shows for the first time since the pandemic.

Looking Ahead: Retail Sector's Optimistic Outlook

With low inflation, soft loan rates, and reduced income-tax slabs, executives forecast a turnaround in the second half of the fiscal. The government's move to rationalize GST rates by Diwali is expected to further spur demand, making essential and aspirational goods more accessible.