The Hindu : Andhra Pradesh / Hyderabad News : Malls register fewer footfalls Recession Effect

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Thursday, Dec 25, 2008
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Andhra Pradesh

Andhra Pradesh - Hyderabad

Malls register fewer footfalls Recession Effect

S. Sandeep Kumar

Despite lucrative offers, customers not willing to spend more this season

Sales decline by 20 per cent this year, say shop-keepers
Customers prefer traditional market outlets to malls

— PHOTO: P. V. SIVAKUMAR

Lukewarm response: There is hardly any bustle of shopping for Christmas outside a prominent shopping mall in the city.

HYDERABAD: Blame it on the economic meltdown or the 26/11 Mumbai terror strikes, the yuletide spirit has not made shopaholics to flock malls and retail outlets in twin cities this Christmas season. Commercial outlets, all decked-up with Christmas trees and Christmas goodies, have not lured customers and are sporting a desolate look.

Despite lucrative offers by leading garment and footwear manufacturers, not much business is happening in malls and individual outlets, says P. Padma Rao, manager of Liberty Revolutions footwear store at City Centre mall.

“Compared to last year, sales have declined by nearly 20 per cent this year. Mumbai attacks have cast a bad effect and people, particularly corporate employees are confining to homes,” he adds.

To save up on hard-earned money, customers are opting for traditional markets like Begum Bazaar, Secunderabad General Bazaar and Koti over malls and branded outlets for Christmas shopping. Last minute Christmas shopping for Christmas trees and decorative items was going on at a brisk space at these traditional places on Wednesday.

But even that did not appear to have cheered many shop-keepers. Majority of customers made only necessary and limited purchases. Most of them were looking for economical illuminating stars than the costlier ones. “Customers are not inclined to spending more this season,” says V. Prakash, a trader in General Bazaar.

However, bakers and confectioners have made good business. “Despite seven per cent rise in prices of raw materials and plum cakes costing Rs. 200 per kg, there is a growth of 25 per cent in our sales, says Khalander, store manager of Bakers Inn, Bakers and Confectioners.

No orders

Even the garment industry seems to be affected by the economic crisis. “After Dasara season, dealers and retailers have stopped placing orders, as a result, business is down by 50 per cent this season,” says Hyderabad Garments Manufacturer and Wholesalers Association president, J. Manik Rao.

“We now rest all our hopes on the Sankranti season. But doubts persist as to whether the market would recover by then,” he adds.

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