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Retail sales in India in May dropped by 79 per cent compared to 2019 May figures as stringent lockdowns across states significantly hit retail businesses, according to estimates by the Retailers’ Association of India (RAI). Spending on apparel plunged by 77 per cent and purchases of sports good fell by 80 per cent. Footwear sales fell by 86 per cent.
In terms of categories, beauty, wellness and personal care saw the steepest decline of 87 per cent, while quick service restaurants witnessed a dip of 70 per cent.
Jewellery and consumer electronics also witnessed 76 per cent and 71 per cent fall in sales respectively. The food and grocery segment, however, fared relatively better with a decline of 34 per cent. A sustained pickup in inflation may have also prompted consumers to limit expenditure, according to Indian media reports.
There cannot be an annual comparison this time since India was under complete lockdown in May last year. Hence, all comparisons have been done with data of same period in 2019 and April 2021 month on month.
The survey showed that sales in southern India were down by 73 per cent in May 2021 compared to May 2019, while the decline in sales was the steepest in West and North, falling by 83 per cent. Eastern region saw sales decline by 75 per cent.
"Retailers are looking forward to some improvement in the month of June with gradual unlocking. However, the retail industry needs the collective support of various government bodies to tide over the present situation," RAI chief executive officer Kumar Rajagopalan was quoted as saying.
With consumption declining steadily since the past year following COVID-led lockdowns, retail businesses have been under tremendous financial strain on numerous fronts, including rentals, salaries, electricity charges, various taxes and licence fees.
Fibre2Fashion News Desk (DS)
Retail sales in India in May dropped by 79 per cent compared to 2019 May figures as stringent lockdowns across states significantly hit retail businesses, according to estimates by the Retailers' Association of India (RAI). Spending on apparel plunged by 77 per cent and purchases of sports good fell by 80 per cent. Footwear sales fell by 86 per cent.