Liquor shops see festive surge in UPI payments; bar spending remains subdued

Liquor leads UPI transaction growth

Liquor stores recorded one of the sharpest jumps in UPI transactions this festive season, with payments more than doubling from a year earlier, a Moneycontrol analysis shows. By contrast, bars and nightclubs saw tepid 2.4 per cent growth, suggesting people's preference for drinking at home over social outings.

The effect is visible in October’s numbers. UPI volumes at beer, wine and liquor shops surged 110 percent from a year earlier, far outpacing most consumer-facing categories. Month-on-month, the segment logged a 13 percent rise, reflecting a clear shift towards at-home celebration.

Bars lag even as liquor shops boom

Spending at bars, taverns, nightclubs and cocktail lounges remained weaker in comparison. Payments at drinking establishments grew just 2.4 percent year-on-year, though transactions picked up nearly 9 percent from September. The muted rise suggests that discretionary social outings lagged the broader rebound in festive spending.

Grocery, meat and confectionery lead festive consumption

Most consumption categories recorded robust momentum through the festive month. Grocery and supermarket payments rose 38 percent year-on-year, aided by festival stock-ups, while freezer and locker meat provisioners saw a 50.7 percent jump in UPI volumes.

Clothing, cigars and confectionery were among the fastest-growing segments, outpacing the overall UPI growth rate of 26.4 percent. Confectionery outlets alone rose 32 percent year-on-year.

Restaurants and bakeries see steady growth

Home-centric consumption patterns were evident across food-service categories as well. Fast-food restaurants recorded a 26 percent rise in transactions, while bakeries and full-service restaurants logged a 23 percent year-on-year increase — solid gains, but softer compared to last year’s pace.

Electronics stores posted slower double-digit growth, reflecting the end of heavy discounting cycles and a shift in festive spending priorities.

Digital categories diverge; utilities decline

Beauty and barber shops saw slower annual growth, though activity strengthened compared with September. Online marketplaces posted a 62 percent rise year-on-year but fell 10.6 percent month-on-month as festive discounts tapered off. Digital gold transactions rose 12 percent from September.

Utilities were among the few segments to contract. Payments for electricity and water bills declined 8.5 percent year-on-year, making it one of the weakest-performing categories during the festive season.