Retail Sales Surge 5% in February 2024, Reflecting Consumer Spending Patterns: Survey
The latest Retail Business Survey conducted by the Retailers Association of India (RAI) reveals a growth of 5 per cent in sales for February 2024 compared to the same period last year, showcasing how the sector is navigating through evolving consumer behaviours and economic fluctuations.
Kumar Rajagopalan, the CEO of RAI, sheds light on the findings, noting the cyclic nature of consumer spending across various categories and regions. Kumar says, “Customers seem to spend cyclically across categories and regions. East of India was showing strong growth for most part of the financial year, but seems to have weakened over the last couple of months. Similarly, Consumer Durables And Information Technology (CDIT) products growth seem to face headwinds in the last quarter while it grew well in the first three quarters. Overall consumers are recalibrating purchases based on various category spend across the stated categories as well as travel and capital expenditure like automobiles and housing purchases. What we also gather is that the middle-class consumers are stretching their budgets, thanks to easy availability of finance and then are recalibrating their expenditure based on EMI outflows.”
Across different regions, retail businesses are witnessing growth, with West and South India leading the pack with 6 per cent growth each, followed by North India at 4 per cent and East India at 3 per cent. The surge in sales is mirrored in various categories, with sports goods, footwear and Quick Service Restaurants (QSR) reporting notable growth figures of 9 per cent, 8 per cent and 7 per cent, respectively, compared to February 2023.
Amidst this dynamic retail landscape, India's e-commerce market is set to soar sevenfold, reaching USD 300 billion by 2030, according to India Brand Equity Foundation (IBEF). IBEF also asserts that the next wave of growth will be led by e-grocery and localised initiatives, emphasising the role of discounts in driving market expansion.
Projections from IBEF forecast India's e-commerce market to increase to USD 99 billion by 2024, propelled by a 27 per cent compound annual growth rate.
Saahil Nayar, CEO of Swiss Beauty, highlights the significance of omnichannel presence, citing the pivotal role of retail stores in fostering personal engagement and building trust with customers. "While online channels play a crucial role in reaching a wider audience, we believe retail stores not only serve as points of sale but also offer an opportunity for personal engagement with customers," Nayar affirms.
Vishal Chaturvedi, Vice President, Retail & Operations, The Body Shop, says, “We are focusing on omni-channel expansion while using newer opportunities in high convenience formats to build stronger brand affinity in India.”
As India's retail landscape continues to evolve, with e-commerce heading towards exponential growth and traditional retail embracing digital integration, the industry's resilience and adaptability remain steadfast.
