22 July 2024, Mumbai
To boost demand and sales, retailers including Shoppers Stop, Reliance Retail, Lifestyle, and V-Mart are banking on a surge in nuptial celebrations in the latter half of the fiscal year.
The second half of the fiscal year boasts approximately 47 auspicious wedding dates, compared to only 14 in the first half. Expecting a strong festive season, retailers believe they have the right merchandise to be a wedding destination, says Kavindra Mishra, Managing Director, Shoppers Stop.
In FY24, India’s retail sales growth rate continued to decline every month, indicating weak consumer sentiment across segments like apparel, footwear, and quick service restaurants (QSR). The industry grew at the rate of 4-7 per cent.
This slowdown continues to persist this year too with retail sales growth in May and June remaining modest at 3 per cent and 5 per cent, respectively, according to a survey by the Retailers Association of India (RAI) of the top 100 retailers. Retailers are seeing some recovery since June onwards with growth in Q3, FY25 expected to be stronger, adds DevarajanIyer, CEO, Lifestyle International.
Vedant Fashions, Owner, Manyavar, notes, a lower base will result in better sales numbers upon recovery. However, companies continue to remain cautious about orders. Things have slowed down again despite signs of recovery from June 20 onwards, adds Mayank Mohan, Owner, Mohanlal Sons.
Post-COVID-19, pent-up demand led to booming sales across athleisure wear, apparel, and lifestyle products. Consumers upgraded wardrobes after offices reopened, and eating out and socialising picked up, resulting in 13-24 per cent growth every month throughout FY23. However, after a surge in spending across various segments in the post-pandemic period, India's retail sales expansion has slowed.
However, with the upcoming wedding season in July likely to boost sales in this and the next quarter, the overall sentiments look positive, adds LalitAgarwal, Chairman, V-Mart.
