Slow festive season dampens Indian retail in December 2023
30 January 2024, Mumbai
Indian retailers faced a lackluster holiday season in December 2023, with overall sales growth of just 4 percent compared to the previous year. Even with holiday discounts and the wedding season boosting some sectors, consumer spending remained muted across most categories.
Interesting data-points
Sales in December grew by a meager 4 per cent despite discounts and the wedding season. Sales across South India soared by 7 per cent while sales in North, West, and East India lagged behind. The sales growth in South India was driven by high-value purchases like cars, houses, and electronics on EMI, while discretionary spending took a hit.
Like-for-like sales in existing stores dipped by 5 per cent as retail continued to struggle with sluggish demand due to inflation.
With inflation showing no signs of abating and global economic uncertainties looming, the upcoming months could be challenging for retailers. Adapting to changing consumer preferences and offering attractive financing options for high-value purchases may be the keys to weathering the storm.
