Retail businesses across India see slow growth in June as inflation worry continues

NEW DELHI: Retail businesses across India reported a slow growth of 13% in sales in June this year as compared to pre-pandemic levels (June 2019), according to a survey released on Monday. The survey by the Retailers Association of India (RAIAI) said the headwinds of inflation on consumer spending is still a worry and may impact the upcoming festive fervor.

Kumar Rajagopalan, CEO, of Retailers Association of India (RAI ), said, “While June 2022 has witnessed growth as compared to the same period before the pandemic, the rate of growth has definitely slowed down. Many retailers have indicated that the second half of June was not very encouraging as there weren’t too many celebratory occasions such as weddings to drive sales.”

“We will have to wait and watch how the next two months will pan out,” he added. During June this year, the growth in sales compared to pre-pandemic time (June 2019) is noticeable across regions too, according to RAIAI, with sales in East India growing to 17%, North India showing a growth of 16%, West India indicating 11%, and South India showing a growth of 9%.

It is to be noted that in May this year, retail sales were up 24% compared to pre-covid levels. Retailers of sports goods and jewellery witnessed a slightly better performance than other categories. Quick Service Restaurants (QSR), Footwear and Apparel indicated a stable growth in June 2022.