• Despite increased footfall, Deepavali sales in Chennai have dipped due to a surge in prices.
• Shopkeeper R. Janakiraman attributes the decline to increased factory prices of crackers and other items.
• Essential Deepavali items have also seen a price surge, impacting the purchasing power of customers.
• Despite the downturn, shopkeepers remain hopeful for last-minute purchases to boost sales.

As the festive season unfolds in Chennai, a surge in footfall at shopping malls and discount shops is a common sight. However, this year, the increased number of shoppers has not translated into a proportional increase in sales. Shopkeepers across the city have reported a noticeable decline in sales volume, casting a shadow over the usually vibrant Deepavali celebrations.

R. Janakiraman, a cracker shop owner in Anna Nagar (East), Chennai, shared his observations with IANS. He noted a significant increase in the factory price of popular crackers such as 'Kuruvi,' 'Chain crackers,' 'Knockout,' and other items. This surge in prices, coupled with the shopkeepers' profit margin, results in a substantial increase in retail prices, which Janakiraman believes is deterring customers.

The impact of this price hike is evident in the sales volume. Janakiraman revealed that the sales volume, which typically reached Rs 4 to 5 lakh during this period in 2023, has fallen to approximately Rs 3 to 4 lakh this year. This indicates a decrease in daily sales by about Rs 1 lakh, a significant drop that coincides with a 15 per cent price increase compared to the previous year.

The Ripple Effect of Price Hikes

The price hike is not confined to crackers alone. Essential Deepavali items, including diyas, sweets, gold, and clothes, have also seen a price surge. Karthiyani, a 54-year-old school teacher from Purasawalkam, Chennai, pointed out that these items have risen by 15 to 20 per cent since 2023. She noted that the price of gold has increased by at least Rs 2,000 per gram, while diyas are over 25 per cent more expensive than last year.

Karthiyani's personal experience further illustrates the impact of these price hikes. Last year, I bought a bag of crackers for Rs 5,000; but this year, I could only get around three-quarters of that amount for the same price, she said. Additionally, she noted that the price of cashew sweets in Sowcarpet has jumped from Rs 600 per kg in 2023 to Rs 800 this year.

The rise in online sales is another factor that shopkeepers believe is impacting retail sales. Despite a heavy turnout on Sunday, the last weekend day before Deepavali, many shopkeepers indicated that online sales are also affecting their business.

Hope Amidst Declining Sales

Suchitra Nair, a homemaker, shared her shopping experience with IANS, echoing the sentiments of many other shoppers. There's been an increase in prices for all essential Deepavali items, leading to reduced sales. I decided to buy fewer items to manage costs, she said.

Despite the current downturn, some shopkeepers remain hopeful that sales will pick up in the last couple of days leading up to Deepavali. They believe that many people traveling from Chennai to their hometowns may make last-minute purchases, potentially boosting overall sales.

Representatives from the Ramanathapuram Street Merchants' Association also observed a dip in sales in recent days. Even on Sunday, business volume was lower than last year, though they are optimistic for an uptick in the coming days.

The price hike, attributed to factors such as increased factory prices and the rise of online sales, has led to a decline in customer numbers and sales volume. However, there is still hope among shopkeepers that last-minute purchases will provide a much-needed boost to sales. As the city gears up to celebrate Deepavali, it remains to be seen how these economic factors will ultimately impact the festive spirit.