The recent announcements by the government would allow brands to spur consumption, said Devendra Chawla, CEO of Spencer's Retail. Additionally, the festival season ahead is likely to add to the positives, he added.

Finance minister Nirmala Sitharaman on Friday announced the government's decision to slash corporate tax rates to 22 percent for domestic companies provided they will not avail exemptions or incentives and 15 percent for new domestic manufacturing enterprises as part of a raft of measures to boost economic growth.

“The recent announcements should allow or at least I am hopeful brands should be able to now spur consumption whether in terms of better pricing or working with us on promotions or making offers. In India, there is no better time than Diwali or festive season to bring customers out. So, definitely we are hopeful that it should be a good Diwali,” said Chawla in an interview with CNBC-TV18.

Chawla said that some categories have definitely slowed down and added: "We are working with brands and category owners to spur consumption."