homeretail NewsRaymond bets on strong demand as average ticket size increases to Rs 3,700 3,800

Raymond bets on strong demand as average ticket size increases to Rs 3,700-3,800

To understand the ground reality of demand at retail outlets, CNBC-TV18 spoke to Amit Agarwal, Group Chief Financial Officer, Raymond, and Kumar Rajagopalan, Chief Executive Officer, Retailers Association of India. Agarwal mentioned that demand remains strong and the average ticket sizes have increased from Rs 3,200-3,300 to Rs 3,700-3,800.

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By Sonia Shenoy   | Anuj Singhal   | Prashant Nair  Apr 13, 2022 1:20:45 PM IST (Updated)

Listen to the Article(6 Minutes)
India is slowly coming out of the shadows of the COVID-19 induced rules as all restrictions have finally been lifted. Consumption is seeing a pick-up and demand is back at retail outlets.

To understand the ground reality of demand, CNBC-TV18 spoke to Amit Agarwal, Group Chief Financial Officer, Raymond, and Kumar Rajagopalan, Chief Executive Officer, Retailers Association of India.
Agarwal mentioned that the recovery in demand has been very strong and it has already exceeded the pre-COVID levels in the lifestyle space. He said that the average ticket size has increased from Rs 3,200-3,300 to Rs 3,700-3,800.
“If we take the ticket sizes at our various stores, and exclusive brand outlets (EBOs) all across the country, the ticket sizes have moved up by almost 20 percent; people who were shopping around Rs 3,200-3,300 have moved to Rs 3,700-3,800. So, we are seeing that the individuals who are coming forward to purchase, they are purchasing a higher quantum and people want to spend,” he said.
Raymond has also increased its prices, Agarwal shared.
He added that there is strong demand from the wedding industry. He said that average wedding spends have increased by 15-25 percent. “The wedding spends have also gone up in the range of 15-25 percent depending upon the individual. So, we are seeing good traction,” said Agarwal.
Rajagopalan of Retailers Association, also corroborated the pickup in demand by citing that the apparel market has grown 12 percent when compared to pre-pandemic levels. He, however, cautioned that inflation is the real concern for demand currently.
He said, “We got the data for the month of March and it looks like overall, the market has done about 12 percent more than the pre-pandemic levels, which is good news, at least from a value perspective.”
He mentioned that the value segment is seeing stiff margin pressure while the luxury and premium segment is starting to see a resurgence. “Even during the pandemic, the luxury products were doing quite well in India because people were not travelling out but they still wanted to make themselves feel good," he said.
"These are items bought only during occasions and there is a whole lot of occasions in this country. It’s now seeing a resurgence because marriages are happening, people are travelling and its getting reflected in various parts,” said Rajagopalan.
Watch the video for the full interview.

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