The Indian retail sector is seeing a strong revival as the economy recovers from the COVID-19 pandemic. Despite macroeconomic uncertainties and high inflation, consumer spending accelerated this year. Retail spending is also being boosted by strong credit expansion.
In November, retailers posted a 15% growth in sales surpassing pre-pandemic levels; this growth was led by segments such as footwear, sports goods, and jewellery, the Hindu Businessline reported, quoting the Retailers’ Association of India (RAI).
However, the impact of inflationary challenges on the discretionary sector was visible, according to the industry body.
Retailers in the eastern and western areas saw increases of 17% each compared to November 2019. Sales increased by 12% each in the northern and southern areas.
The footwear segment witnessed a growth of 29 percent in November this year over pre-pandemic levels of November 2019, and sales of sports goods were up nearly 24 percent.
According to the RAI, sales of sporting goods and footwear increased as a result of consumers purchasing gear for the FIFA World Cup to support their favourite teams as well as the marathon season.
In addition, the wedding season helped the jewellery sales garner a growth of 23 percent over pre-pandemic levels in November.
Food and grocery sales risen by 13 percent in November over pre-pandemic levels, and consumer durables and electronics sales were up about 4 percent compared to pre-pandemic levels due to the key festival season being in October this year, the report said.
Overall retail sales growth in November this year compared to November 2021 was pegged at about 6 percent, according to the report.
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