Retailers see signs of recovery, post 8 per cent growth in March: RAI

Retailers in the country have begun witnessing signs of recovery and on an average saw a growth of about 8 per cent at a pan-India level in March over the same month last year, as per the latest survey findings of Retailers Association of India (RAI).

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This growth was led by sports goods, beauty and wellness and apparel segments. The industry body said that it expects to see consumption witness a boost with the Lok Sabha elections. It also noted that retail chains have resumed expansion signalling optimism among the industry.

Despite this positive outlook, the jewellery sector has experienced a slight slowdown due to a recent surge in gold prices | Photo Credit: BIJOY GHOSH

Jewellery sector

Kumar Rajagopalan, CEO, Retailers Association of India (RAI), said, “In March 2024, our review of the retail sector revealed signs of a recovery in growth. The consumption landscape appears robust, driven by increased discretionary spending on apparels and sporting goods. However, the jewellery sector, despite its significant growth since last Diwali, has experienced a slight slowdown this past month, likely due to the recent surge in gold prices.”

“In the lead-up to the 2024 general elections, we are optimistic about the retail sector’s growth prospects. Historically, election years catalyse economic activities, enhancing consumer spending across regions and categories. This year, we anticipate a similar trend, with substantial increases in discretionary spending, particularly in sectors such as FMCG and consumer durables,” he added.

Retail business in southern India reported a growth of 9 per cent in March 2024 over March 2023. In western India, retailers recorded sales growth of 8 per cent, followed by north and east India signalling a growth of 7 per cent and 6 per cent, respectively.

Rapid growth

In categories, sports goods reported a growth of 11 per cent followed by apparel and beauty segments, which witnessed a growth of 10 per cent each as compared to sales levels in March 2023. The QSR sector recorded a growth of 9 per cent during this period. Footwear, food and grocery segments also posted a growth of 9 per cent each, the report noted.

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Jewellery growth was estimated at 6 per cent. At the same consumer durables and electronics segment posted a degrowth of 4 per cent in March 2024 over March 2023, as per RAI survey report.

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