Home Economy Retailers urged to cut price to boost demand

Retailers urged to cut price to boost demand

By IANS,

Mumbai : Retailers should cut prices in the next six months to clear inventories and push sales, an industry representative said here Thursday.

“Retailers may reduce prices in the next few months in an effort to make people buy more. The slowdown should not continue for more than six months. Value retail is already on track now,” said Gibson Vedamani, chief executive of Retailers Association of India, the group representing the country’s organised retail trade.

Retailers, he said, were looking at enhancing operating efficiencies and not bringing down inventories. But it is essential for retailers to start reducing stocks to tackle mounting losses, Vedamani added.

In a bid to boost demand, retailers across the country have begun offering heavy discounts and sales promotion offers on Christmas and Diwali.

Vedamani was of the view that liquidity in the market has improved and the retail sector was in a more comfortable situation, having received secured loans from banks.