Retailers report 14% growth in October as compared to pre-pandemic period: Survey

According to results of the 21^st edition of the Retail Business Survey by the Retailers Association of India (RAI), Indian retailers reported a 14% growth in October compared to the same month in the pre-pandemic period, after fighting with low footfalls and trades for more than a year now.

October commemorates the onset of the festive season in the country with Navratri and Dussehra, a time when most retailers see surge in their sales.

As compared to previous year, the retailers registered a 34% year-on-year growth, stated RAI.

Mr. Kumar Rajagopalan, CEO at RAI stated that “The October assessment has unveiled promising results. To realize the complete effect of the festival season on retail sales, it is crucial to look at the figures for October and November combined. We would look forward to the results for November to take definitive conclusions. Though, all the signs indicate a optimistic trend.”

Retail businesses across regions have showed growth in trade as compared to pre-pandemic levels with West India indicating 23% growth, subsequently East India at 13% while North and South India showed a growth of 10% respectively, as compared to sales levels in October 2019, presented the results of the study.

Among the categories, jewellery showed a substantial recovery with growth of 24% as compared to sales levels in October 2019, while the apparel category also showed growth of 6%.

Categories such as beauty and wellness - including salons and footwear - are optimistic of regaining with the uptake of shopping activity nearing Diwali, according to RAI’s survey. At 31% and 29% sales compared to pre-pandemic levels (same period in 2019), respectively, food and groceries and quick service restaurants (QSR) maintain to show growth, as per the study.

As the country attains vaccination of over one billion citizens, the retail industry is confident of establishing a steady pace of recovery throughout the ongoing festive quarter. The positivity is visible as retail chains have restarted expansions across the country.

Retailers, who were nearly on the verge of recovery after the first wave of the pandemic, saw a harsh fall in sales as the second wave hit the country. In April and May, the retail industry, which normally clocks ~US$ 40-45 billion, lost over half of it, ~US$ 25-30 billion, RAI had notified. Though, as the second wave fades, retailers have been registering gradual recovery and are now back on track of growth.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.