Retail businesses in India saw their sales increase by 36% in July compared to the same month last year, according to data released by the Retailers Association of India (RAI).
Compared to July 2019, the pre-pandemic period, retail sales across the country were up 18%, according to the report.
Growth is visible across all regions from pre-COVID levels, with sales in East India increasing by 25%, West India by 10%, North India by 16% and South India by 21%. Compared to last year too, the four regions recorded growth of between 30 and 45%.
“Retail businesses across the country are doing well as healthy sales growth from pre-pandemic levels continues. Key categories like apparel and footwear are showing traction. Given this trend, retailers are expecting a good festive season, which could bring joy to businesses,” said Kumar Rajagopalan, CEO of Retailers Association of India (RAI).
In terms of categories, sporting goods recorded the strongest growth of 32% compared to July 2019, followed by footwear and furniture and furnishings at 23%, clothing and apparel at 22% and consumer durables and electronics. at 17%.
Food, groceries and jewelry grew by 11% and 15%, respectively, compared to the pre-COVID period.
Compared to last year, while sporting goods increased by 83%, footwear and furniture and furnishings increased by 46% and 51% respectively.
In an interview with CNBC-TV18 on Wednesday, Vinit Sambre, head of equities at DSP Investment Managers, said he was positive on food and footwear in the retail sector.
“There are smaller categories, which should benefit; in retail, footwear, food retail businesses are the ones we are bullish on and we also hold them in the portfolios,” he said.
“The industry has gone through a cyclical downturn due to COVID, but now that most institutions are opening up, demand dynamics should also normalize,” Sambre added.
First post: STI