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Shimla shopkeepers report festive-season sales down 20-40% as heavy online discounts pull shoppers away

Our read

Shimla's festive sales will more likely than not close the season below last year's level, with only a partial recovery from the current 20-40% drop.

For operators

Shimla's independent shopkeepers say festive sales are down 20-40% on last year as online discounts pull shoppers away, so local stores need to fix parking, display and bulk-buy pricing or keep losing footfall.

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Reported sales shortfall below 20% (the low end of the 20-40% drop) by the end of the festive season would mean footfall is recovering and wholesaler orders will hold.

The report,

Small traders cannot match online rivals because they buy limited stock, face parking problems near main markets and cannot display goods outside shops, Veopar Mandal Shimla president Harjit Kumar Monga and other traders said. They remain hopeful as the season has just begun.

Reported 20-40% sales fall alongside Shimla's trader base and a 3-4 month slump
Sales decline versus last year
20-40%
Business enterprises in Shimla
about 6,000
Persons employed by Shimla enterprises
more than 12,000
Market slump before festive season
3-4 months

07:30 IST · 10 moves · what each means · free

Demand data

From the report. Source details below

Business enterprises in Shimla: about 6,000
Persons employed by Shimla enterprises: more than 12,000
Enterprises in main city: about 3,000
Market slump before festive season: 3-4 months

What it says about consumers

Traders' body claims of 20-40% lower festive sales in Shimla, after a 3-4 month slump, point to online discounting taking share from small offline retail in a hill market, but this is anecdotal and local rather than a national read.

Next data points

  • Trader association statements on how sales compare with last year in later festive weeks
  • Any administration move on parking or display rules for market shops
  • Local traders announcing their own discounts or extended trading hours
  • Wholesaler and supplier order volumes from Shimla retailers after the season

The source

Source Read the source at CNBC-TV18 Published

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