According to a survey conducted by the Retailers Association of India (RAI), retail sales in January 2024 saw a modest increase of 5% compared to January 2023 levels.
Despite the festive season, October and November saw only a 7% growth, while December experienced a 4% growth, rendering the October to December quarter sluggish for retailers.
In contrast to January 2023, retail establishments have exhibited a disheartening pattern this January. Although the wedding season bolstered the jewellery, food, and grocery sectors, the majority of other categories experienced only marginal growth.
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Many retailers have reported experiencing declining sales on a like-for-like basis. Although there has been growth in the northern region of India, areas in the east and south have seen negative growth due to subdued consumer demand for non-essential products.
“Even CDIT (consumer durables and IT) retailers have found the month of January to be challenged for growth. Many garment retailers have found growth challenging in spite of it being discount season for non-occasion wear garments,” said Kumar Rajagopalan, CEO, Retailers Association of India (RAI).
Retail establishments in various regions have shown an increase in sales compared to January 2023 levels, with West India leading at 6% growth, followed by North and South India at 5% each, and East India lagging behind with only a 3% growth rate.
Across different categories, Quick Service Restaurants (QSR), food & grocery, and jewellery witnessed a 9% growth each, while sports goods saw an 8% increase, and beauty products experienced a 6% rise compared to sales figures from January 2023.
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