RAI noted that this trend reflects varying results across retail segments across the country, with retail businesses yet to show double-digit growth on a comparable basis.
Apparel sales grew 3%, while food and grocery sales rose 6%. Beauty, wellness and personal care sales rose 2%. Quick-service restaurant (QSR) sales also slowed, reaching just 1%.
Despite the strong performance in the summer months, sales of durable consumer goods also slowed to 1%. In July, sales of furniture and decorative items and sporting goods fell into negative territory, with declines of 2% and 1% respectively.
“The retail sector in India is facing challenges as businesses are yet to see any real growth compared to the previous year. Most retailers are reporting negative growth on a comparable basis, which is a cause for concern. This underscores the need for strategic interventions to boost consumer demand and drive sustainable growth across the industry,” said Kumar Rajagopalan, CEO, RAI.
According to the survey, Western India recorded the highest sales growth at 3%, followed by Southern India at 2%, while Northern and Eastern India each showed an increase of 1%.
Retailers reporting their first-quarter numbers echoed a similar sentiment. Jagdish Bajaj, chief financial officer of Aditya Birla Fashion & Retail, said at the analyst conference that the overall consumer environment has remained weak. “The apparel market, in particular, was further impacted by a subdued wedding season and a prolonged heatwave, all of which have contributed to reduced consumer activities,” he added.
Arvind Fashions MD and CEO also said that the April-June quarter saw the impact of elections, peak heatwave and fewer wedding dates which impacted traffic across online and offline channels.
However, some retailers are seeing green shoots, especially in rural markets.
Lalit Agarwal, managing director of Vmart, said he sees some green shoots.
“We have seen some improvements, both in rural areas and in urban markets. We are certainly getting mixed responses from other companies and from other players and competitors. So, we are also noticing that some companies have not yet recovered or they still consider this to be a down moment, but I see some signs. There are definitely some signs, not too many, because when we go to the interior, when we go to the cities, the problem that used to exist is already there,” he said.
In a statement, RAI called for the implementation of strategies to stimulate consumer demand and foster the long-term development of the retail industry by all its stakeholders.
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