It is monsoon here in India and it is Retailers across India are raining discounts. Some ran the best discounts to mark the celebration of Indian independence last weekend. However, our team was busy analyzing the retail discount and freebie mode visiting store after store. [Localized way of running promotions in India]
Several arrangements were made for crowd management and that proved to be helpful. Lifestyle retailing also had similar deals to offer and managed to pull in good crowds.
In nearly all the hypermarkets and departmental stores, apparels were being sold at 20%-50% discounts. In hypermarkets, offers like “Buy 1 Get 1 Free” or “Buy 2 get 1 free” were in abundance. Low ticket home appliances (such as steam irons, mixer grinders) and electronics (cameras, stereos, DVD players) had the highest discounts in their respective categories.
Footfalls and Conversions at some of the key stores in Mumbai,
Spencers High High [Read High Footfalls and High Conversions for Spencers]
Big Bazaar and Food Bazaar High, High
Star India Bazaar High High
Shoppers Stop High High
Lifestyle High High
Pantaloon Moderate Moderate
Tanishq Moderate Moderate
Crossword Moderate Moderate
Home Stop Moderate Low
Home Centre Moderate Low
E-Zone Moderate Low
Titan Low Low
Raymond Low Low
Discount offered by leading retailers across various categories:
- Apparel: Big Bazaar – Buy 1 Get 1 Free, Buy 2 Get 1 Free, Spencers – 30 to 50%, Star India – Flat Rs 99 to Rs 399
- Apparel Lifestyle: Shoppers Stop and Lifestyle 20 to 40%, Pantaloon Fresh Fashion – 20 to 50%.
- Electronics: Big Bazaar 5 to 10%, Spencers 10 to 15%
- Basic Home Appliances: Spencers 30 to 35% and Shoppers Stop 10 to 20%
- Home Furnishings: Home Stop 20 to 25% and Lifestyle 15 to25%
- Cosmetics: Big Bazaar, Lifestyle and Shoppers Stop all offered 5 to 10% discount.
- Personal Products: Big Bazaar, Spencers and Star India were all offering combo offers.
- Staple Food: Big Bazaar, Spencers and Star India all resorted to combo offers.
We expect all the above retailers to record same store sales growth QoQ. One more important observation is, if Big Bazaar is running a combo offer on Personal Products, Spencers and Star India have also followed the same to woo and maintain its loyal customer base. Now, don’t you think that days are not far off when retailers will start to offer price matching guarantee [i.e if you bought a DVD player at Rs 2,000 at retailer X, and retailer Y is selling the same at Rs 1,800, then retailer X should offer you the difference as a gift coupon of Rs 200]
Questions, Comments and Critics are most welcome.