GST launched: Big Bazaar offering 2-22% discounts on food, grocery items
Big Bazaar, the hyper and super market retail chain run by Kishore Biyani’s Future Group, is offering discounts ranging from 2-22% on select food and grocery items which will be taxed at a lower rate when the goods and services tax (GST) comes into force at midnight on Friday.
The retailer has announced a sale starting 12 am for two hours with the new prices. Goods with the new packaging and pricing are yet to reach Big Bazaar’s 280 stores across the country.
The sale, according to Biyani, is to mark the muhurat (auspicious time) of transitioning to the new tax regime.
“Every good thing starts with a muhurat,” Biyani told Mint.
Stores across the country will shut at 9.30pm on 30 June for two-and-a-half hours to upgrade to the new software and billing system. At 12 am, the stores will open again for business for two hours with the discounts in the range of 2-22%. These prices will be applicable over the weekend as well, said a company spokesperson.
The company is also offering consumers a cashback of Rs300 on its Future Pay wallet for purchases of Rs1,000. The cash back is just for the two hours of the midnight sale
“We have segregated our products according to the GST tax slabs that they come under. These discounts will be absorbed by the company and are reflective of what we think will be the new pricing under GST,” a Future Group spokesperson said.
Categories with 10% discounts include soaps, hair oil, biscuits, plain oats, dahi and dairy whiteners. Frozen vegetables will be sold at 20% off and baby diapers have a 15% discount. Homeware like glass tumblers, dinner sets, cups and mugs will be sold at a 5% discount, the company said in a statement.
The retailer was one of the most proactive companies when the government announced demonetization of high-value bank notes at close to 8.30pm on 8 November. Within half-an-hour, it sent 10 million text messages to Future Group loyalty programme members announcing that its stores would remain open until 11.50pm. Close to 200,000 new customers shopped at the group’s stores in the last two hours before store closures.
Organised retailers are expected to be among the bigger beneficiaries of GST as the tax makes it difficult for businesses to operate in the informal economy and evade taxes.