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Inflation casts its shadow on sales

KOCHI: As shops and markets in the State get ready to welcome Onam, the question doing the rounds in merchant circles is will this year’s festival turnover match those of the earlier ones.

The doubt arises because of the fears of an economic slowdown.

The double-digit inflation, showing a rising trend, despite going down marginally of late, causes concern among the merchants.

With purchasing power going down, the net sales volume may decrease during the festival season.

The biggest worry among dealers is that this can result in an overall fall in the annual performance.

That is because more than half the annual sales in the State take place during the Onam season.

A depressed sentiment can be contagious.

It is a question of survival for companies employing scores of workers down the line.

There is some consolation though, such as the Central Pay Commission award and the festival bonus.

But the steep hike in prices deters people from going on a shopping spree. Frugality may be the watchword for many.

That, in fact, will mean a considerable blow to the sellers. One of the striking factors affecting non-resident Keralites had been the appreciation of the rupee in the past.

The dirham or the dinar in exchange would mean less of the rupee.

That will tell a lot on the spending of the high net-worth clientele in shops across the State.

Shopkeepers in Kochi do nurture hopes and they are getting ready to welcome the festival with gusto.

The doors will be open for the shopper till the stroke of midnight. While there will be illumination all around, will there be light in the shoppers’ eyes? It is too early to predict.

While most multinational companies offer special packages to attract the festival crowd and refuse to admit that the sales will not be better, the real story can be known only later.

Nevertheless, the Onam arriving at the first quarter of the month boosts the confidence of the sellers. Many believe that the “have money, will spend” syndrome will continue to rule the market.

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