India's retail sales continued to register single digit growth with sales growing 9% year-on-year (YoY) in the month of September, 2023, as per data from Retailers Association of India (RAI). The previous month of August also saw sales grow 9%. While the industry has begun to see some greenshoots in demand, some retailers continue to flag muted consumer sentiment.
From a category standpoint, jewellery sales grew 13% as buying picks up around the festive season. Sales of consumer durables and electronics grew nine percent, while beauty, wellness and personal sales also grew 9%.
With festivities largely moving to October and November, categories that usually see an uptick in sales around this period saw only single digit sales. Apparel sales for instance were up 8%, while footwear sales grew just 4%. Meanwhile, food & grocery sales were up 14%.
While a single digit growth in sales have been on the back of a high base, retailers too have been flagging off a weak consumer sentiment leading to lower discretionary spending over the past few quarters.
Shoppers Stop, while reporting its Q2FY24 results also flagged off weak demand but said that there are some greenshoots being seen in September. On the Q2 analyst call, newly appointed Kavindra Mishra, ED & CEO, said demand was also impacted by the adhik maas (thirteenth month of a lunar year), where consumers tend to put off purchases, and the fact that the festive period largely shifted to Q3, along with the wedding season.
However, he added, that the demand environment remains weak across cities, towns and categories unlike last year when it was more driven by rural.
RAI said that there is anticipation among retailers of an uptick in purchases in the run up to Diwali and that retailers are betting big on the season to drive growth. In addition, the cricket season is helping in sales of sports goods, which saw a growth of 14 percent.
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(Edited by : Sangam Singh)
First Published: Oct 26, 2023 6:05 PM IST
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