Demonetization negatively affects Christmas sales

While there have been many benefits from the demonetization move, there have been few disadvantages too.

One of those disadvantages is the negative effect on the holiday season. There are usually a lot of sales at this time of the year.

However, due to the demonetization, it is found that this year the sales of Christmas are not very good. It is found that the Christmas sales this year have gone down by 50 per cent.

Experts say that this is a result of demonetization.

Even though the market has gone cashless and everyone looked for cash alternatives, the number of sales in this festival season is a shock.

Many people say that the ₹2000 note is posing a problem.

The lack of small change is making these notes pretty much unusable.

As a result, people are opting to not buy and cut down on the transactions they make.

There are also many people who are not going for cash alternatives.

People who want to buy Christmas trees usually prefer cashless transactions.

The trees range around ₹40 to ₹3,000. Christmas decorations are priced between ₹80 to ₹1,500.

Many shopkeepers have installed Paytm or POS machines to attract customers.

This is because people can only withdraw ₹2500 a day from ATMs and the Christmas decorations cost around the same.

While the shopkeepers opted for alternative payment methods, many could not offer sales so as to make a good profit.

The installation of POS also cost vendors a bit of money.

Some of them wanted to avoid this expense and didn’t install machines.

The shortage of cash is another major reason for reduced sales.

Many vendors could not place big orders.

Many shopkeepers even returned what they purchased to avoid a loss.

They didn’t have enough cash to buy as much as they did last year.

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Image Reference: https://pixabay.com/photos/christmas-christmas-tree-decorate-1869902/