Indian Retail Businesses Saw 24 Per Cent Growth In May

Retailers Association of India (RAI) has said that the retail businesses across India witnessed 24 per cent growth in May this year against the pre-pandemic level of the same month in 2019. According to the latest retail business survey conducted by RAI, sales in western India grew by 30 per cent, while eastern India showed a growth of 29 per cent compared to the pre-pandemic sales.

Similarly, southern India posted a rise of 22 per cent and northern India grew 16 per cent, it added.

RAI said sales across categories continue to indicate steady growth. With outdoor activities picking up, categories such as quick-service restaurants (41 per cent) and footwear (30 per cent) are indicating rapid growth, and segments like beauty and wellness (9 per cent) have also started to show positive growth.

Consumer durables and electronics sales grew 15 per cent in May compared to the same month in 2019, while apparel and clothing also witnessed a growth of 24 per cent, according to the RAI survey.

The food and grocery category clocked 23 per cent growth, and sports goods rose by 24 per cent, it added.

Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. It accounts for over 10 per cent of the country’s gross domestic product (GDP) and around eight per cent of the employment. India is the world’s fifth-largest global destination in the retail space.

As per Kearney Research, India’s retail industry is projected to grow at a slower pace of 9 per cent over 2019-2030, from USD 779 billion (around 58.4 lakh crore) in 2019 to USD 1,407 billion (around INR 105.5 lakh crore) by 2026 and more than USD 1.8 trillion (around INR 140 lakh crore) by 2030.

Revenue of India’s offline retailers, also known as brick and mortar (B&M) retailers, was expected to increase by INR 10,000-12,000 crore (USD 1.39-2.77 billion) in FY20. India’s direct selling industry was predicted to be valued at USD 2.14 billion by the end of 2021.

Development Scenario

Retail tech companies supporting the retail sector with services such as digital ledgers, inventory management, payments solutions, and tools for logistics and fulfillment are taking off in India. In the first nine months of 2021, investors pumped in USD 843 million into 200 small and mid-sized retail technology companies, which is an additional 260 per cent of capital compared to the entire 2020.

91 Squarefeet, a retail store development business, has worked with over two dozen companies, including Tata, Aditya Birla Group, and Reliance Retail, illustrating the quick pace with which brick-and-mortar stores are being opened.

In March 2022, Reliance Brands bought the India franchisee rights and the current Sunglass Hut retail network from DLF Brands. DLF would invest about INR 2,000 crore in Gurugram and Goa to build two new retail complexes.

In November 2021, Department for Promotion of Industry and Internal Trade announced that it is working on a regulatory compliance portal to minimise burdensome compliance processes between industries and the government. In October 2021, retailers in India increased by 14 per cent compared with last year.