Retail sales up 36% in July with strong growth in sports goods, footwear and furniture

Retail businesses in India saw a 36 percent jump in their sales in July compared to the same month last year, data released by the Retailers Association of India (RAI) showed.

As compared to July 2019, the pre-pandemic period, the retail sales across the country were up 18 percent, the report said.

The growth is visible across regions when compared to the pre-COVID levels with the sales in East India growing 25 percent, West India 10 percent, North India 16 percent and South India 21 percent. In comparison with last year as well, all four regions have seen a growth between 30 and 45 percent.

“Retail businesses across the country are looking good as healthy growth in sales over pre-pandemic level continues. Key categories like garments and footwear are showing traction. Considering this trend, retailers expect a good festive season, which could bring cheer to businesses,” said Kumar Rajagopalan, CEO, Retailers Association of India (RAI).

In terms of categories, sports goods saw the highest growth of 32 percent when compared to July 2019, followed by footwear and furniture & furnishing at 23 percent, apparel and clothing at 22 percent and consumer durables and electronics at 17 percent.

Food and grocery and jewellery saw a growth of 11 percent and 15 percent, respectively, as compared to the pre-COVID period.

In comparison with last year, while sports goods were up 83 percent, footwear and furniture & furnishing were up 46 percent and 51 percent, respectively.

Source: Retailers Association of India

In an interview with CNBC-TV18 on Wednesday, Vinit Sambre, Head of Equities at DSP Investment Managers, said that he is positive on food and footwear in the retail sector.

“There are smaller categories, which should benefit; within the retail, footwear, the food retail companies are the ones where we are optimistic on and we hold them in the portfolios as well,” he said.

“The industry has gone through a cyclical downturn because of COVID, but now most of the institutions are opening up, the demand momentum should also normalise," added Sambre.