With the onset of festival season in September, retailers across the country saw a strong boost in sales. According to estimates of a survey by the Retailers Association of India (RAI), there was a 21 per cent growth in retail sales in September over the pre-pandemic levels.

This is sequentially higher than the growth of about 15 per cent seen in August. Strong double-digit growth was noticeable across all regions. Sales were up 23 per cent in the south, 21 per cent each in the east and north, and 17 per cent in the west, over September 2019 levels.

‘Cheer season’

Kumar Rajagopalan, CEO, RAI, said, “This festival season is expected to be a return to cheer season. There is a sense of thankfulness and well-being and also a sense of fulfilment of aspirations and luxurious cravings. Since consumers can finally do unrestricted shopping as well as socialise with relatives and friends after the pandemic, almost all categories are showing good growth.”

“Business is also expected as customers are travelling during holidays. Another good trend visible is that people are not only shopping for themselves but also to gift. Omni-channel retail has increased the capability for consumers to shop — when they want and where they want,” he added.

While food and grocery sales were up 56 per cent compared to pre-Covid levels, QSRs (quick service restaurants) reported a growth of 48 per cent. Festival-related categories of consumer durables (30 per cent), apparels (25 per cent), footwear (22 per cent) and jewellery (11 per cent), too, garnered double-digit growth. Sales of sports goods were up nearly 36 per cent while beauty & personal care and furniture & furnishing were up 5 per cent and 4 per cent, respectively.

Huge turnover

Meanwhile, the Confederation of All India Traders (CAIT), too, estimates that there will be an infusion of ₹2.5-lakh crore in the markets through the sale of goods and services during the festival season. Praveen Khandelwal, Secretary General, CAIT, said after two years, Diwali will be celebrated without any Covid restrictions and consumers are thronging the markets. He pointed to factors such as good agricultural crop, hike in DA for Central government employees, productivity-linked bonus for non-gazetted railway employees and strong gifting trends that are expected to boost spends.

While the Diwali festivity business is expected to generate a turnover of about ₹1.5-lakh crore, another ₹1-lakh crore worth of spends are expected to be made on travel and other services pertaining to Diwali, Khandelwal added.

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