India's retail sales continued to grow in single digits, defying expectations of a robust festive season amid muted consumer sentiment.
The country's retail sales grew 7% in the October-November period as compared with the same month last year, according to data from the Retailers Association of India. The growth flat-lined at about 6-9% for the entire year, suggesting continued pressure on household spending on account of high inflation.
"Retailers had anticipated double-digit sales growth during Durga Puja and Diwali season," said RAI's Chief Executive Officer Kumar Rajagopalan. "Most retailers, however, have indicated that the footfalls were not even equal to 2022, though the sales were just about the same as the previous year."
The sluggish sales were pronounced in categories like apparel, food and grocery as well as quick-service restaurants, according to RAI's findings.
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Rajagopalan said that retailers, especially in the apparel category, grew over last year only because of new store openings and online sales, while like-for-like store business was negative in more than 50% of the retailers.
While low-value products saw a quantitative dip, retailers witnessed a growth in high value products. Jewellery business grew on the back of higher gold prices and the demand in the latter part of November thanks to the wedding season.
Retailers are pinning their hopes on the wedding season, occasional wear business and the two-month long end-of-season sale to reverse the trend, said Rajagopalan.
West India has been the most impacted, with sales growing just 5%, RAI data showed. On the other hand, sales in the eastern part of the country registered a growth of 11%, followed by the south (7%) and north (6%).
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