Retail gross sales in August get better to 88% of pre-COVID ranges boosted by festive procuring

a store filled with lots of stuffed animals

© Supplied by CNBCTV18

With festive procuring choosing up tempo, retail gross sales in India in August 2021 recovered to 88 p.c of pre-COVID ranges of August 2019, the Retail Enterprise Survey by the Retailers Affiliation of India (RAI) indicated.

In July, retail gross sales have been 28 p.c down or at 72 p.c of July 2019 ranges. Retailers throughout the nation have seen a pickup in gross sales with Onam, Rakshabandhan and Eid kicking off the festive season procuring this yr.

In keeping with RAI’s information, the expansion was led by North India the place gross sales have virtually reached pre-pandemic ranges (at 98 p.c), carefully adopted by South India the place retail gross sales are at 97 p.c of August 2019 gross sales. Nevertheless, with malls nonetheless seeing some curbs in Maharashtra with respect to vaccination necessities, retail gross sales within the west have been 24 p.c down in August 2021 over the identical interval in 2019.

Additionally learn: Attire retailers eye double digit progress in festive season as customers return to shops

When it comes to classes, RAI’s survey indicated that the 2 classes that noticed large progress exceeding 2019 ranges are Fast Service Eating places (QSR), which grew 12 p.c, and meals & groceries, which grew at 4 p.c in August.

Nevertheless, magnificence & wellness, which incorporates salons, together with attire, footwear and jewelry are but to catch as much as the pre-pandemic ranges of gross sales. RAI says that the general business sentiment will enhance when the clothes and niknaks class exhibits progress.

Whereas attire and clothes gross sales declined 12 p.c in August, they nonetheless noticed vital progress sequentially, after being down 37 p.c in July. Equally, Magnificence, Wellness & private gross sales noticed a decline of 31 p.c in August 2021 as in comparison with a 50 p.c decline in July.

Additionally learn: V-Mart Retail sees sturdy demand resurgence; says co optimistic about festive season

Gross sales, nonetheless, at the moment are anticipated to choose up on the again of a robust festive season. “Because the festive season approaches and the inoculation drive picks up tempo throughout the nation, we’re hopeful that the festive procuring this yr will drive constructive progress for many retailers, with the potential for some retailers doing even higher gross sales than the pre-pandemic ranges,” Kumar Rajagopalan, CEO, Retailers Affiliation of India (RAI), mentioned.

Retailers that CNBC-TV18 spoke to additionally indicated comparable optimism with the likes of Raymond and Way of life anticipating sturdy double-digit progress this festive season over pre-pandemic ranges. The business’s optimism stems from an increase in demand they’ve seen in folks returning to shops to buy. In comparison with final yr, Raymond is anticipating a 50 p.c progress in festive gross sales.

Nevertheless, RAI’s Rajagopalan says that despite the fact that restoration in the meanwhile appears encouraging throughout classes, retailers proceed to keep up cautious optimism as a consequence of the potential for a 3rd wave of the pandemic.

Additionally learn: Aditya Birla Style AGM: Income goal of Rs 25,000 crore after 5 years, ethnic put on clear focus space

Previous post AMC Inventory: Organising for One other Large Squeeze?
Next post Arts schooling group says arts are important in back-to-school plans