Shoppers Stop Ltd. reported that a surge in air pollution across northern India in late 2025 impacted consumer demand, contributing to flat sales and lower earnings in the quarter ending December 31.
A spike in air pollution across northern India in the final months of 2025 impacted consumer demand, according to Shoppers Stop Ltd., a leading department store chain which said the issue was among factors that weighed on sales growth.
Consumer Mobility
“Elevated pollution levels in northern India reduced consumer mobility and discretionary spending,” adding to uneven demand and the impacts of festive calendar shifts, the Mumbai-based company said in a statement. Sales in the three months ended Dec. 31 were flat and earnings fell. The chain’s shares tumbled Wednesday as much as about 12% before paring losses.
Winter Pollution
Air pollution in India is a yearlong issue which becomes more severe during the winter, when cold temperatures trap emissions from road traffic, construction dust, and smoke from stubble burning in agricultural regions surrounding the capital New Delhi.
Record AQI
Last November and December saw the worst levels of pollution in years in the capital, with about 90% of days recording an air quality index above 300, according to Bloomberg calculations based on official data. The United States’ Environmental Protection Agency sets a reading of 50 or below as acceptable.
Business Vulnerability
The impact of recent poor air quality on Shoppers Stop’s sales growth underscores “the vulnerability of consumption to environmental disruptions,” the company said in its statement.
Health Concerns
It adds to other indicators that chronic air pollution is starting to impact businesses in the capital. Akums Drugs and Pharmaceuticals Ltd.’s finance chief Rajkumar Bafna abruptly resigned in December on health grounds, citing the city’s poor air quality.
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Published on January 21, 2026
