The trend of annual sales of large retailers, including the Future Group, Shoppers Stop and Spencer’s Retail, has set in. Interestingly, these sales contribute 20-40% to the overall revenues of these companies, along with boosting the same-store sales (SSS) growth.
Future Group registered an SSS growth of 30-40% during Independence Day sales. While it recently concluded its five-day long ‘Mahabachat’ across its outlets (Big Bazaar and Food Bazaar), Shoppers Stop and Hypercity is continuing with their annual sales. For Shoppers Stop, the sale ends on September 5.
Reportedly, Future Group was targeting Rs 800-crore sales during the five-day promotional period. Kishore Biyani, founder & CEO, Future Group, said, “These activations and promotions give boost of almost 30-40% to the same-store-sales growth as well as the overall revenues of the retail business.”
Although Biyani refused to divulge the revenues earned during the five-day offer, Rakesh Biyani, CEO of the Group’s retail business, said it was the largest trading week for Future Value Retail. A spokesperson confirmed that the company did a business of Rs 100 crore across its 132 Big Bazaars and 185 Food Bazaars on the Independence Day itself. For these activities to be successful, a lot depends on the negotiating power of a retailer with its suppliers.
The fortnight sale at Hypercity, headed by BS Nagesh, started from August 14. It had offered an up to 50% discount on apparels, accessories, home ware and appliances to gadgets across all its stores. However, for Shoppers Stop, which posted a better-than-expected SSS growth of 21% in the first quarter of FY11, the sale is biannual and would extend till September 5.
Govind Shrikhande, managing director, Shoppers Stop, said, “We don’t have a particular figure as far as expectations from these sales are concerned. Typically, these sales, along with summer and winter sales, contribute to about 20% to the overall business.”
The biannual sale at Shoppers Stop is under apparel and non-apparel verticals across 80 product categories, excluding cosmetics. For Hypercity, this would be its annual sale since it is mostly into food grocery, which is not seasonal.
RPG group-led Spencer’s Retail has about four to five major yearly events such as Republic Day in January, Independence Day in August, Regional new years in April, the festival time in October and New year in December. A Spencer’s spokesperson said, “These annual events have always been sale boosters since all of them are major buying instances for the consumers. We induce more buying by giving offers/discounts in relevant products. The recently concluded Independence Day promo at Spencer’s registered a 20% increase in footfalls.”
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