Ahead of the GST launch on Monday, executives said, a number of malls and retailers, including DLF Retail, Tata Cliq, Fabindia and Croma, have thrown open the red carpet for customers and are overstocking in a variety of categories, including apparel, electronics, appliances and household products.
Harsh V Bansal, Co-founder of Unity Group (which operates over half a dozen malls in Delhi and Punjab), stated, “We are expecting a big jump in sales and both mall operators and retailers are ready to handle the rush. The GST cut combined with the festive season will give a significant push to sales.”
Online beauty, fashion and lifestyle retailers, Tata Cliq and Myntra, over the weekend, sent out mailers to consumers announcing new stocks and discounts of up to 80% on footwear, casual clothing and household products. As per Myntra, it is introducing over 2,000 products across apparel and footwear. Bharat Kumar, Senior Director – Revenue and Growth, Myntra averred that in the current year, consumers will be able to choose from over four million styles and they are expecting millions of shoppers to participate. In fact, in anticipation of 15-20% higher sales over last festive season, offline retailers have dressed up stores.
Anshu Tandon, President of Delhi’s high-end Khan Market, said that in expectation of robust demand from Monday which coincides with the beginning of the festive season, retailers have stocked in excess. Though he warned that it is to be observed if the sales momentum sustains beyond the initial two weeks. Till now, GST on apparel and footwear priced up to Rs. 1,000 was 5% and above that was 12%. As per the revised GST slabs, apparel and footwear priced up to Rs. 2,500 will be taxed at 5%.
According to analysts, branded clothing retailers like Trent, Vishal Mega Mart and Shoppers Stop will all profit from the updated slabs. According to the Retailers Association of India, an industry group, growth momentum could surpass 10% annually in the upcoming month.
