India’s retail sales grew by a mere 5 per cent in January 2024, according to a survey by the Retailers Association of India (RAI).
Despite the festive season, sales growth remained subdued in October and November, surging by only 7 per cent increase, while sales in December grew by 4 per cent resulting in a sluggish October-December quarter for retailers.
The RAI noted a discouraging trend in January 2024, with minimal growth observed across various categories, except for segments like jewellery, food, and grocery, which were buoyed by the marriage season.
Many retailers reported negative growth on a like-for-like basis, particularly in the east and south regions of the country, where consumer demand for discretionary products remained weak.
Kumar Rajagopalan, CEO, Retailers Association of India, highlights the challenges faced by retail businesses in January. Even consumer durables and IT retailers experienced hurdles in achieving growth, while garment retailers struggled despite discount offers for non-occasion wear garments, he says.
West India led the growth at 6 per cent, followed by North and South India, each at 5 per cent, and East India trailing behind with only a 3 per cent increase in sales compared to January 2023.
Among categories, Quick Service Restaurants (QSR), food and grocery, and jewelry sectors reported the highest growth rates at 9 per cent each, followed by sports goods and beauty products compared to January 2023 sales levels.
