After multiplexes, retail giants face IPL heat

BANGALORE: The ongoing IPL Twenty20 cricket tournament has taken the
nation by storm and retailers complain that they are among its
unintended casualties, just like the movie halls which have been
drained of cine-goers.

Matches are played and screened at prime time, overlapping with the
hours when retailers conduct nearly half of their business, between 6
pm and 9 pm.

"The drop in walk-in customers is 20-30% since the IPL season
started," says Chakor Jain, business head for Lee at Arvind Brands.
Businessmen estimate a conversion rate (from walk-in to sales) of 40%
daily. This amounts to a fall in sales of 5-15%.

No one has been spared by the IPL phenomenon — the decline can be seen
across all stores, mass or premium. Big Bazaar, the Future Group's
department store chain, too, has recorded lower business volumes
during the last two months.

"IPL has become a game of bats and eyeballs, turning a nation of
cricket lovers into couch potatoes," observes brand consultant Harish
Bijoor. IPL is different in that it has also managed to interest women
while traditionally men are seen as cricket lovers, he says.

This has led to entire families being glued to their television
screens with a decline in shopping as an outdoor activity. But
retailers say they will adapt to the IPL reality from next year.

"The IPL, like Diwali or the March exams, is just another factor that
we will have to keep in mind when we plan our budget for a month or
season. For IPL, we will just have to keep it at 4-5% lower," says
Sanjeev Mohanty of United Colours of Benetton. "It is a temporary
phenomenon and its impact has been negative because of its novelty."

Furthermore, most feel that IPL is not necessarily an impediment to
business in the retail sector; it could have a positive impact if
plans are made and the opportunity exploited.

"Reebok has probably done better during this season because of its
association with the game. IPL can be used to leverage on merchandise,
and that is what we are looking at for the next season," Mr Mohanty
says. Some preparation is all that retailers need to make the most of
the IPL season," agrees Mr Bijoor.

"Malls and high-end shops could get cricket-friendly, with bigger
screens, schemes, tieups with brands and so on," he says. Retailers
have apparently decided to live by the axiom 'If you can't beat 'em,
join 'em'.

Source: Economic Times