GST rollout: Shoppers make merry as retailers slash prices up to 40%
Retailers have began destocking of old inventories to minimise losses post the GST implementation. The prices of consumer electronics may go up 3-5% post GST and so retailers both offline and online have started offering discounts up to 40% on these goods.
- Retailers offer discounts on consumer electronics up to 40% before GST implementation to minimise losses.
- GST to increase price of consumer electronics up to 3-5%.
- The discounts offered by retailers are three times more than regular discounts offered.
As we approach the Goods and Service Tax (GST) rollout retailers have started destocking their shelves to make way for the new tax regime.
Retailers are now offering home appliances like refrigerators, television sets, air conditioners, washing machine and other electronic goods at up to 40% discount, a report by Economic Times said on Tuesday.
The clearing of old stock was anticipated by industry experts who said that GST may trigger possible destocking.
Retailers anticipated a loss in sales due to GST; however the report said that they will be maintaining a minimum stock come July 1.
The usual discounts offered by retailers around the time of festivity would range between 10 to 15%. GST has increased discounts up to three times, the report added.
Losses of retailers would go up to 6% on unsold stock purchased before May and about 14% on year-old inventories. Since the prices of consumer electronics is estimated to increase 3-5% post GST the retailers have decided to cut their losses.
Even e-commerce websites were seen to offer huge discounts over the past weekends with discounts going up to 28%. There were discounts on watches, sports, fitness equipment and consumer electronics on e-commerce websites of Flipkart and Amazon.
Recall of inventory from the warehouse of e-marketplaces to get the MRP changed by the brands would make the vendors of the e-commerce website bear the cost of recall fee, a report by India Today on Saturday quoted All India Online Vendors Association (AIOVA).