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Retail Sales Surge At Fastest Pace In Five Months

Domestic retail sales rose 28% over the previous year in March 2022: Retailers Association of India

<div class="paragraphs"><p>Mannequins wearing leggings and shoes hang from the ceiling above clothing displayed for sale.&nbsp;(Photographer: Patrick T. Fallon/Bloomberg).</p></div>
Mannequins wearing leggings and shoes hang from the ceiling above clothing displayed for sale. (Photographer: Patrick T. Fallon/Bloomberg).

Retail sales in India rose at their fastest pace in five months on a low base and as the pandemic curbs were lifted.

Domestic retail sales rose 28% over the previous year in March 2022, the most since 34% recorded in October, according to the latest survey by the Retailers Association of India. Compared to the pre-pandemic March 2019, sales of consumer goods rose 12% as shoppers spent on apparel, jewellery, sport goods, consumer durables and electronics.

  • Retailers of consumer electronics and durables posted 45% growth over March 2021.

  • Furniture retailers registered 28% year-on-year growth.

  • Retailers of beauty and personal care saw 14% growth.

  • Food and grocery clocked 28% growth.

  • Sales of apparel rose 26% over the year earlier.

  • Sales of quick-service restaurants rose 21% year-on-year.

Still, non-essentials such as footwear, and beauty and wellness lagged the pre-pandemic levels, marred by inflation pressures and persisting supply-chain disruptions.

  • Beauty and personal care sales dropped 11% compared with March 2019, while footwear sales declined 2%.

  • Consumer electronics and durables rose 60% over March 2019, while food and grocery retail grew 13%.

“The removal of pandemic-related restrictions has resulted in all-round growth of retail businesses across regions and categories, including categories that were hitherto showing weak sales like garments and footwear,” said Kumar Rajagopalan, chief executive officer at the association. He flagged inflation in most products such as electronics and fast-moving consumer goods could have aided growth figures as retailers took price increases to offset pressure on margins.

Region-wise, sales in east India rose 23%, followed by north India (18%) and west India (8%) over March 2019. West India, however, hasn’t surpassed the pre-Covid level.