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- 17 Oct 2022
- ICICIdirect Research
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RETAIL BUSINESSES REGISTER STRONG GROWTH IN SEPTEMBER OVER PRE PANDEMIC PERIOD
News:
Retail businesses across India reported a 21% jump in sales in September 2022 compared to September 2019 or pre-pandemic levels according to the 32nd edition of the retail business survey conducted by the Retailers Association of India (RAI).
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Consumers are expected to celebrate a restriction-free Diwali after a gap of two years. As a result, footfall in markets have revived and consumer sentiment has seen an uptick. In the initial festive period during the second half of September, demand trends have been strong and an uptick in festive buying was visible as consumers shopped for new clothes and bought gifting items. The key thing is that demand has been buoyant across consumption categories. Food and grocery retailers reported a 56% jump in sales in September compared to the same period in 2019 while apparel and clothing retailer saw sales grow 25%. Consumer electronics and white goods retailers reported a 30% jump in sales in the same period. Further, uniform trends are visible across all regions in India with growth in the range of 17-23% across east, west, south and northern region. Strong demand trends with momentum likely to continue in the festive season augurs well for the Indian retail sector and should provide thrust to revenues in the ensuing quarters.
Impact:
Positive.