11 July 2024, Mumbai
Marked by reduced consumer spending, an extended heatwave and fewer wedding occasions, the retail sector in India faced significant challenges during the April–June quarter.
As per quarterly reports from companies like Avenue Supermarts and Nykaa, sales across various categories including clothing and lifestyle declined during the quarter.
Manish Kapoor, Managing Director & CEO, Pepe Jeans India, describes the period as particularly tough due to the decline in discretionary spending. Operator of the Dmart stores, Avenue Supermarts lowered its expectations for Q1 sales growth to 18 per cent from 20 per cent recorded in Q4, citing decreased consumer expenditure.
VedantModi, Chief Revenue Officer, Vedant Fashions, notes, unprecedented in five quarters, a prolonged weak wedding season impacted brands like Manyavar, Mohey, and Mebaz. The lack of wedding events in June exacerbated the challenges, he adds.
The Retailers Association of India (RAI) observes sluggish retail activity in its business surveys, with overall sales across categories in April–May showing only a modest 3-4 per cent increase compared to the previous year. RAI anticipates this trend to continue into June.
Looking ahead, AnandAgarwal, CFO, V-Mart Retail, expects a reversal in the second half of the year. He anticipates government initiatives coupled with the holiday season will stimulate consumption and boost industry prospects.
