Retail in Asia

In Trends

Heavy advertising by e-tailers in India hits physical retailers’ sales growth

Heavy advertising by e-commerce portals is impacting the sales growth of physical retailers in India.

According to estimates, online retailers spent INR300 crores (INR3 billion, USD48.6 million) on advertising in December quarter of current financial year, almost ten times higher than all the physical retailers put together during the quarter.

Shoppers Stop saw 0.8 percent growth in its like-to-like sales growth in December quarter, one of the lowest growth in many quarters. In Q2, it had seen like-to-like sales growth of 11 percent. Like-to-like growth means growth coming from existing stores, which are in the business for a year or more.