117395RIL has remained flat in last two months, should one buy its shares now or not?

Retailers in shopping malls who have been complaining of sluggish sales and infrequent footfalls have found an unlikely saviour – the silver screen heroes. Blockbuster movies such as Gadar 2, OMG 2 and Rocky aur Rani Kii Prem Kahaani have not only set the screen on fire but also boosted sales in malls in August with many in the film audience thronging the retail shops. The Economic Times has reported of a 10-15% rise in footfalls and sales in these outlets on a month-to-month basis.

Apart from the desi variety, Barbie and Oppenheimer, too, are also drawing audiences.

“Around six-seven releases have actually worked well for cinema’s occupancy and people have come back to the screen. There is an increase of footfall by a good 10-11% and that helped F&B and apparel. Typically, people come in to have food and also shop before or after the movie,” said Pushpa Bector, senior executive director at DLF Retail which manages premium malls in the New Delhi-NCR region.
In fact, these movies also contributed to the shopping surge in the Independence Day weekend sale when retailers reported a surge of 15-20% in billing compared to the same period in 2022.
The delight of the retailers comes against the backdrop of sluggish sales and piling inventory that could not be addressed by flash discounts and End-of-Season-Sales that were preponed to late May and early June to liquidate the stocks.
“We have seen some changes week to week, especially last week when we saw movie releases. Even the Independence Day weekend was a strong weekend and there was good, healthy growth,” said Shailesh Chaturvedi, managing director and CEO of Arvind Fashions. This company sells brands such as US Polo Assn, Calvin Klien, Flying Machine, Arrow, Tommy Hilfiger and Sephora in this country.
“There has been at least 10% growth in the footfalls due to the people coming back to theatres and a part of that crowd has contributed to the growth of F&B and shopping as well. Average time spent by a person in the mall has gone up considerably,” said Jayadharan Gangadharan, regional director, Lulu Mall, Lucknow.
Shoppers Stop, Max, United Colours of Benetton, H&M, Marks and Spencer and Bodyshop in Select City Walk and DLF Mall of India, Noida registered rise in sales due to flow of movie audience.
Acknowledging the role of films as crowd pullers, cofounded of Unity Group that manages more than six malls in Punjab and Delhi said, “Cinemas are the largest crowd puller for a mall. While only serious shoppers come when there is no good movie running, the footfall from a theatre is a bonus for retailers. People who come to a movie often spend extra time to shop.”