Retailers report 5% Y-o-Y growth in January

Retail sales in January 2024 showed a growth of mere 5% as compared to the sales levels in January 2023, according to the survey by Retailers Association of India (RAI).

Despite the festive season, October and November also showed growth of 7% only, while in December the growth was 4%, making the October -December quarter a slow one for retailers.

“Retail businesses have shown a discouraging trend in the month of January as a comparison to 2023 January. While the marriage season supported jewellery, food and grocery to post a growth, most of the other categories have witnessed minimal growth.

Most retailers have stated that they have witnessed negative growth on like for like basis. While the north of India has witnessed growth, many in the east and south of the country have witnessed negative growth with weak consumer demand for discretionary products.

“Even CDIT (consumer durables and IT) retailers have found the month of January to be challenged for growth. Many garment retailers have found growth challenging in spite of it being discount season for non-occasion wear garments,” said Kumar Rajagopalan, CEO, Retailers Association of India (RAI).

Retail businesses across regions have indicated growth in sales as compared to January 2023 sales level with the highest in West India signaling growth of 6%, while North and South India indicated a growth of 5% each followed by East India signalling a growth of only 3%. In categories, QSR, food & grocery and jewellery reported a growth of 9% each, followed by sports goods (8%) and beauty (6%) as compared to sales levels in January 2023.

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