Delhi’s priciest markets pay the price for protests

New Delhi's most expensive shopping districts, Khan Market and Connaught Place, are experiencing a significant decline in business as protests in central Delhi deter shoppers and disrupt store operations ahead of the festive season. Footfall has plummeted by up to 90% over the past three days, exacerbating losses from earlier protests that forced shops to close for over two weeks. The disruptions threaten to undermine the recovery of in-store shopping, one of the busiest periods of the year for retailers.

Retailers in Khan Market and Connaught Place are considering approaching the Supreme Court to request a shift of the protest site from Jantar Mantar, despite the area being de-notified. Traders fear the decision could be challenged in court. Sanjeev Mehra, president of the Khan Market Traders' Association, stated that regular protests are hurting their revenue, as it took time for in-store shopping to return to normal after COVID-19.

Shops in the two markets lose between Rs 60,000 and Rs 3.5 lakh per day of closure, including losses from foregone sales and fixed expenses like rent and salaries.

The timing of the disruptions is particularly concerning, as businesses are building up inventory in anticipation of stronger festive-season demand. Atul Bhargav, president of the New Delhi Traders Association, representing businesses in Connaught Place, noted that footfall is down 90% compared to the same period last year. Retailers worry that prolonged disruptions could damage the reputation of the two shopping districts and discourage premium brands from maintaining a presence there.

The immediate priority for retailers is to recover sales during the festive season, but if disruptions persist, shoppers may turn to malls and online platforms, further weakening traditional retail districts. Both markets attract affluent Indian shoppers and foreign visitors, making them crucial destinations for premium retail brands. Traders fear that repeated closures are creating a negative impression that will be challenging to reverse.