At Malls, footfall at a discount, fear at a premium

New Delhi: Consumers stayed away from malls in the first week of reopening in parts of India after a two-month gap, with business at 25% of pre-Covid levels despite discounts, cashbacks and promotions, dissuaded by rising Covid-19 infections. Shoppers Stop, H&M and Benetton said high-street shops saw better traction, with sales at 50-60% of pre-lockdown numbers. On the other hand, online sales have surged. E-commerce platforms such as Grofers, Paytm Mall and Big-Basket are giving discounts of 20-50% off on various items. Domino’s and Pizza Hut have also restarted discounts. “Most supply chains are getting back to near normal and we have been able to take that extra spend out of the equation and pass on the benefits to consumers,” said Rohit Sharma, head of supply chain at Grofers. Paytm Mall is giving discounts of up to 30% off on immunity products and 50% off on laptops.76396461BigBasket is giving up to 50% off on breakfast products, in addition to weekly offs. “The discounts and offers given on Paytm Mall are merchant and brandled,” a spokesperson said. Executives said companies are clearing inventories and are luring consumers with discounts. Devendra Chawla, CEO, Spencer’s Retail and Nature’s Basket, said they are offering discounts and advertising has resumed. DLF Malls executive director Pushpa Bector said rising Covid cases and high temperatures are making people cautious. Benetton India CEO Sundeep Chugh echoed this. Malls are at about 35% of pre-Covid levels, while in high street, it’s about 70%, Chugh said. However, shopping centres in smaller towns are faring better.

from Economic Times https://ift.tt/2Y9iMdP