It’s an unfamiliar scene for New Market. The flow of customers in this giant colonial-era shopping arcade has slowed to a trickle. Shop owners are idle and cars zip along nearby Lindsay Street, otherwise a torment for commuters.
The red-brick, gothic-style market, formerly known as Sir Stuart Hogg Market in central Kolkata, dates back to 1874. It has long been a treasure trove for budget-minded shoppers, even as chic outlets have sprung up across the city.
From ready-made to unstitched garments, from eye-catching costume jewellery to silver classics, from gourmet food to fish – it is a haven for both compulsive and impulse shoppers. But with Durga Puja, West Bengal’s biggest festival, just a month away, the narrow lanes lined with shops are sparsely populated.
“I don’t know the reason, but people are not coming to the market,” said a vendor at a saree and lehenga shop.
A black banner demanding “justice” from the West Bengal Young Doctors Front at the entrance of the market paints a picture of a city engulfed in protests.
Kolkata has been in turmoil. Since the alleged rape and murder of a postgraduate doctor in training at the state-owned RG Kar Medical College and Hospital, the city has mobilised to demand “justice” for the victim with demonstrations, graffiti, street plays and more. Opposition parties are trying to catch up.
At the receiving end are retail and food and beverage (F&B) businesses, especially with Durga Puja around the corner.
“It is the peak season for puja sales. Daily sales should have touched Rs 50,000 by now. Instead, they are languishing at Rs 5,000, and stocks are piling up,” laments the owner of a children’s clothing shop in New Market.
Another cloth trader said: “People who buy cloth usually reserve a stock of one and a half to two months. The festive season seems to be a mess.”
The situation is similar in the various markets. In Gariahat, a popular destination in south Kolkata, the main sari shops are deserted.
According to a major national retailer, sentiment is definitely low due to the protests. “In addition, there are disruptions in life as people are not moving around much. This is having an impact on footfall in stores.”
However, there is hope that the situation will normalise closer to the festival. A retail official said: “We will have to wait and watch. The overall sentiment in the country has been low. But demand could pick up closer to the festival.”
Another major retailer said sales were gradually picking up but the bidding was still some time away. “Initial trends show it could be business as usual.”
So far, foot traffic and business at Kolkata’s upmarket malls have been affected.
Man Mohan Bagree, vice president of South City Group, said business had been hit since mid-August when protests took to the streets, with sales down 20 to 25 percent from expectations.
“The end-of-season sales were affected. The food and beverage business was hit hard, with a drop of around 30 percent compared to usual sales, as customers avoid going out due to daily protests in various sectors and the general mood.”
South City Mall has 11 restaurants-bars and a food court with capacity for 1,400 people.
At Quest, a high-end, luxury mall, footfall has dropped slightly. “People are sad about what has happened and business is quiet. The effect has been felt since the last week of August. By the end of October, we will know the real impact,” said Sanjeev Mehra, CEO and managing director of Quest Properties.
Last Sunday, the footfall at the Acropolis mall was 30 percent lower compared to the same period last year. “Overall, the shops also saw a moderate response as we used to get a lot of visitors from Bangladesh earlier,” said Subhadip Basu, general manager of the Acropolis mall.
Traffic jams due to protests add to the woes of the food and beverage industry.
“Our business has been affected since the day the protests started. This has affected all malls. Compared to the previous year, our sales are down by about 30 percent. Part of this is offset by home deliveries, but the number of dine-in customers has declined because people are not in the mood to celebrate,” said Anjan Chatterjee, president and managing director of Speciality Restaurants.
Speciality has 34 units spread throughout the city.
Business is also slow on Park Street, Kolkata’s food hub.
According to Anand Puri, third-generation owner of Trincas, lunch business is good, but fewer people are going out in the evenings. “The positive side is that people who come in have to wait less time.”
Nitin Kothari, owner of Peter Cat, Mocambo and Peter Hu?, said the impact of the protests and the general mood was felt last week (Monday to Thursday). However, the weekend was a good weekend. “Time is the best remedy,” he added.
Corporate sponsors of Durga Puja are trying to assess the situation. From banks to FMCG companies and consumer durables, everyone has a budget for the festival.
A major sponsor said applications from bidding committees had come in. “We are still evaluating.”
Durga Puja is an industry. “Hundreds of thousands of people depend on the festival for their livelihood,” said Saswata Basu, general secretary of the Durgotsab Forum. Basu is hopeful that corporate sponsorship will continue to pick up.
Big-budget pujas rely heavily on corporate sponsorship. Stalls, banners and pillars are the main source of income for puja committees.
Anjan Ukil, secretary of the Ballygunge Cultural Association (BCA), said, “Queries have come in. Advertisers usually close bookings for banners, gates, etc., by this time, but they are delaying decisions on approvals.” The BCA is a prominent puja committee in south Kolkata.
Avijit Majumder, general secretary of the Singhee Park Durga Puja Committee, said direct sponsors had made bookings but advertising agencies were acting cautiously.
In North Kolkata, Gautam Neogi, general secretary of Bagbazar Sarbojanin Durgotsav, said: “Among the major sponsors, we have a tie-up with Coca-Cola. Negotiations are on with others. We hope the pace will pick up after Ganesh Puja.”
Dhrubajyoti Bose Suvo, a key organiser of last year’s main attraction, the Tala Prattoy puja, admitted that the ongoing protests have had an impact.
However, he added: “Big companies have given purchase orders to the bidding committees or agencies. If the market is down, the impact will be felt on a large scale next year. Plans for this year have already been finalised and the committees will go ahead with them.”
There are 43,000 Durga Pujas celebrated in West Bengal and the business surrounding it is a major economic driver.
A research commissioned by the British Council on behalf of the West Bengal tourism department estimated the total economic value of creative industries related to the festival at Rs 32,377 crore (estimated around the time of Durga Puja in 2019). Retail trade accounted for the largest share.
However, UNESCO’s intangible cultural heritage label in 2021 has given a boost to both mainstream art and the businesses surrounding it.
Last year, West Bengal Chief Minister Mamata Banerjee said the celebrations generated over Rs 80,000 crore in business and provided employment opportunities to nearly 300,000 people.
There is a lot at stake at the festival.
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