Retail sales in India grew 17 percent year-on-year in December, showed data from the Retailers Association of India (RAI) showed. Meanwhile, sales grew 16 percent over pre-pandemic levels of December 2019. Last month, retail sales grew only 6 percent over November 2021, while growing 15 percent over pre-pandemic levels of November 2019.
The RAI has said that consumers are cautious in their spending, especially on discretionary products. Last month too, RAI had said that inflation-led worries dampened the ability of some customers to purchase discretionary products.
The Retailers Association of India also said that money spent on travel, setting up of new houses and occasions was showing growth, while that for day-to-day consumption remained muted.
This was reflected in the category-wise sales breakup where occasion-led categories such as jewellery, footwear, beauty and wellness sales saw better growth year-on-year as compared to other categories. Over pre-pandemic levels, footwear reported a growth of 29 percent, followed by jewellery (26 percent) and sports goods (25 percent).
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In a recent stated, the Confederation of All India Traders (CAIT) too said that 32 lakh weddings took place till December 14, where Rs 3.75 lakh crore was spent, adding that it expects a strong second phase, starting January 14 till June 30, 2023 with an estimated expenditure of about Rs 1.25 lakh crore.
There was slowdown in QSR and foods & grocery sales which grew 10 percent each year-on-year. Last month too, these categories clocked a growth of 12 and 13 percent respectively.
Sale of consumer durables, which usually peaks during festive season, also saw a slowdown, growing only 6 percent over December 2019 levels, while growing 15 percent year-on-year.
Analysts too have indicated a weak demand for consumer durables and in smaller electrical appliances in the December quarter. Festive season sales also didn’t meet expectations with more pressure coming in from the entry-level segment. Recovery now remains contingent on a good summer demand and recovery of rural demand.
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