Retailers across India on an expansion drive as sales surpass pre-COVID levels
Expecting fewer disruptions due to the third COVID-19 wave, retailers across India plan to accelerate their expansion plans. Many top retailers including Reliance Retail, Shoppers Stop, Aditya Birla Fashion & Retail (ABFRL) recorded better than expected pre-COVID sales during the October-December quarter of this fiscal. Reliance Retail and ABFRL reported their highest ever quarterly revenue and profit.
Sales grow across all channels
Most of this growth was driven by the festive and wedding seasons. Retailers witnessed a growth in both store and e-commerce revenues as online sales surged due to the pandemic. Reliance Industries’ witnessed around 95 per cent of pre-COVID levels’ footfalls in stores as its retail business recovered completely. The company witnessed rising demand across consumption baskets, notes V Srikanth, Joint Chief Financial Officer. Revenues of Reliance Retail excluding petro retail and connectivity businesses grew by 90 per cent in the December quarter. The company’s consumer electronics, apparel and footwear business doubled while grocery sales also grew by double digits. The company’s earnings before interest, tax, depreciation and amortization grew by 23.8 per cent to Rs 3,822 crore
Sales of Aditya Birla Fashion & Retail grew 55 per cent while Bata India’s sales surpassed pre-COVID levels. Gunjan Shah, CEO, Bata India, said, the company expects consumer sentiment to rebound due to the decline in COVID cases and the vaccination of 15-18 year olds. Titan’s revenue grew 36 per cent as its company’s jewelry business recorded highest growth with other businesses also surpassing pre-COVID level sales.
Diwali brings back smiles
Diwali and post that sales turned out to be good for retailers in India, says CK Venkataraman, Managing Director, Titan. Most retailers witnessed a surge in store footfalls as infections declined and restrictions eased. This also resulted in lowering of discounts and a reduction in the number of sale events held.
Growth fuels expansion plans
Encouraged by growth, most retailers have stepped up their expansion plans. Shoppers Stop announced plans to expand its store network to Tier II markets. These markets offer a huge growth opportunity for retailers, says Venugopal Nair, CEO. The departmental store chain plans to open 8-10 stores this fiscal and another 10 in fiscal 2023.
Reliance Retail also plans to accelerate its growth momentum and expand operations as the situation normalizes, says Gaurav Jain, Head-Strategy and Business Development. The retailer aims to accelerate the pace of its new store rollout. It opened 1,700 stores during April-December 2021.
