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Retail Sales Up 5% In January, Discretionary Spending Weak: Retailers Association

Updated: Feb 22, 2024 06:10:54pm

Retail Sales Up 5% In January, Discretionary Spending Weak: Retailers Association

New Delhi, Feb 22 (KNN) According to the latest survey released by the Retailers Association of India (RAI), retail sales saw a 5 per cent increase in January 2024 compared to the sales recorded in January 2023.

However, retailers observed sluggish sales growth during the month, with the wedding season providing a boost to sales in only specific categories, reported BL.

Kumar Rajagopalan, CEO, RAI, highlighted the disappointing trend in January compared to the previous year, noting that while jewellery, food, and grocery segments experienced growth, most other categories saw minimal growth.

“Retail businesses have shown a discouraging trend in the month of January as a comparison to January 2023. While the marriage season supported jewellery, food and grocery to post a growth, most of the other categories have witnessed minimal growth,” Rajagopalan stated.

He mentioned “Most retailers have stated that they have witnessed negative growth on like for like basis. While the north of India has witnessed growth, many in the east and south of the country have witnessed negative growth with weak consumer demand for discretionary products.”

“Even consumer durables and IT retailers have found the month of January to be challenged for growth,” he further added.

Despite being the discount season for non-occasion wear garments, many garment retailers found growth challenging.

Geographically, retailers in West India recorded a 6 per cent sales growth in January compared to the previous year, while North-based retailers saw an average growth of 5 per cent.

East India experienced a 3 per cent growth, and South India reported a 5 per cent growth.

In terms of categories, QSR, food & grocery, and jewellery reported significant growth of 9 per cent each.

Sports goods sales increased by 8 per cent, and beauty sales grew by 6 per cent compared to January 2023.

However, furniture and furnishing saw a 3 per cent increase, while apparel and clothing experienced a mere 2 per cent growth. Consumer durables sales declined by 1 per cent.

(KNN Bureau)


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