Retail Sales: Consumers in control

Twice every year, retailers pull out all stops for the sale season: On January 26 and on August 15. Every year they also begin discounting their goods earlier than before. So much so that this year, by August 15 most of us would have already finished our sale shopping.

Longer sale periods, however, do not mean people are buying more. A quick check revealed that consumer electronics have been the worst hit among items on sale as buyer sentiment remains poor. The rupee depreciation has also pushed up prices by 20 percent in the past one year as a result of which consumers are staying away.

Apparel continues to do well, while food and groceries have shown growth, although it is lower than inflation. It looks like buyers are only willing to loosen their purse strings when the price is right. Sale or no sale.