December 5, 2008
India Retail
Impact of Mumbai terrorist
attacks on consumption
Quick Comment: The city of Mumbai witnessed its
worst ever terrorist attack last week. The ordeal lasted
for four days, beginning the evening of November 26
and ending the morning of November 29. These events
impacted consumer sentiment and disrupted normal life.
In order to assess the actual impact on consumption, we
gathered data from Pantaloon Retail and Shoppers’
Stop, which are two of the leading listed retail
companies in India. We only looked at the weekend
sales data as most malls and retailers were shut on
Thursday and Friday.
Pantaloon’s total sales in Mumbai declined 4.2% last
weekend compared with the previous weekend. Mumbai
Lifestyle retailing revenues declined sharply by 18%,
whereas Mumbai value retailing revenues actually grew
3%. However, during the same period, the rest of India
grew by 15.1%, with value retailing growing at 16.5%
and lifestyle retailing growing by 10.8%. PRIL has 2
Pantaloon and Big Bazaar stores each within 6-10 kms
from the terrorist attack sites. Shoppers’ Stop also
witnessed a similar sales growth trend. Mumbai
revenues declined 12% whereas the rest of India grew
5%. The closest Shoppers’ Stop store is at least 20-25
kms from the terror attack sites.
December 5, 2008
India Retail
Impact of Mumbai terrorist
attacks on consumption
Quick Comment: The city of Mumbai witnessed its
worst ever terrorist attack last week. The ordeal lasted
for four days, beginning the evening of November 26
and ending the morning of November 29. These events
impacted consumer sentiment and disrupted normal life.
In order to assess the actual impact on consumption ...