In Hyderabad, the rise in online shopping significantly affected retail businesses during the recent Dasara festival. Stores selling clothes, electronics, and groceries did not achieve the sales they anticipated. Despite the festive season, which usually boosts sales, these retailers saw little improvement.
Shop owners are concerned as online shopping continues to impact their sales even during festivals. Many hoped that the Dasara-Diwali season in October would boost their business.
Members of the Hyderabad Merchant Association noted that Dasara sales typically triple compared to regular days. However, online shopping has grown over the past two years, leaving traditional stores struggling. Sales in clothing and garment shops dropped to 40% this year from 30% last year. Large clothing showrooms faced stiff competition from online platforms, leading them to offer special discounts during the festival season. According to Ritesh Sadh, Secretary of the Hyderabad Merchants Association, the challenge is to offer prices lower than online sellers. If shoppers find in-store prices high, they switch to buying online.
Retail grocery stores are also affected, as online platforms offered up to 50% discounts on popular items like milk and sugar. Retail grocery sales dropped by 40%, with shops disappearing in wealthier neighborhoods where online shopping is preferred.
Electronic appliance retailers face challenges from dominant big stores and online sellers, said Rithesh. Large electronic showrooms saw only a 20% increase in sales this year compared to last. Small electronics retailers struggle, needing to hit 50% of their targets during the festival period.
An association member mentioned that reducing profit margins and cutting maintenance costs are crucial for survival in this competitive market dominated by online platforms.
