Retailers witnessed lower than anticipated growth during the recently concluded festival season. As per the latest survey results released by Retailers Association of India (RAI), retail players garnered an average growth of 7 per cent in October and November compared to the same period in 2022. The growth was led by high-value products while demand for low-value products was muted.

Kumar Rajagopalan, CEO, RAI, said, “Retailers had anticipated double-digit sales growth during the Puja and Diwali season in October and November 2023; however, the sales growth has been muted for many retailers. Most retailers have indicated that footfalls were not even the same as in 2022 though sales were just about the same as in the previous year. Many retailers, especially in the apparel category, only grew sales over last year because of new store openings and online sales.”

“While like-for-like store business was negative in more than 50 per cent of the retailers surveyed, retailers did witness a growth in high-value products. Jewellery business grew on the back of higher gold prices and the demand in the latter part of November thanks to the wedding season. However, business for low-value products saw a quantitative dip. Retailers are pinning their hopes on the wedding season, occasion-wear business and end-of-season sale in the coming two months,” he added.

Retailers in eastern India garnered a growth of 11 per cent during October and November compared to the same period last year. Retail businesses clocked 7 per cent growth in South India, followed by 6 per cent and 5 per cent in North and West India, respectively.

In terms of categories, the growth was led by jewellery, sports goods and footwear segments. While the jewellery segment clocked 13 per cent growth, sports goods clocked 11 per cent growth and footwear clocked 10 per cent growth compared to the same period last year. “Consumer durable and IT products saw a growth of 9 per cent due to higher consumer finance schemes, as compared to the sales levels in October and November 2022,” the industry body noted. Furniture and furnishings, and beauty and personal care segments also garnered 9 per cent growth each.

The quick-service restaurant (QSR) segment clocked growth of 7 per cent, while apparel and clothing segment clocked a growth of just about 6 per cent during the festival season compared to last year. Food and grocery sales were pegged at 5 per cent higher.