The retail sales in May 2024, grew by a mere 3% as compared to the sales seen in May 2023, revealed a survey by Retailers Association of India (RAI). As per RAI's CEO the consumer spending on non-essential items remain cautious and the retailers are looking forward to business post-election season. He also expressed optimism that the budget will provide incentives to bolster consumer confidence and support further growth
"While consumer spending on non-essential items remains cautious, categories such as food, grocery, and consumer durables have shown positive growth trajectory. Retailers are looking forward to business post-election season. Budget in July will hopefully provide much-needed incentives to bolster consumer confidence and support further growth in the retail sector,” said Kumar Rajagopalan, CEO, Retailers Association of India (RAI).
South India has recorded the highest growth of 4% in retail sales, followed by East and West India at 3% each, and North India at 2%. Among different categories, food & grocery and CDIT products (consumer durables/electronics) reported a growth of 6% each, followed by QSR, which showed a growth of 5% compared to May 2023 sales levels.
Meanwhile, the retail sales in the US barely rose 0.1%, as still high inflation and high interest rates curbed spending. Excluding gas prices and auto sales, retail sales rose the same amount. Excluding sales from gasoline, whose prices have been falling, sales were up 0.3%.
Sales at clothing and accessory stores rose 0.9 per cent, while electronics and appliance stores posted a 0.4 per cent gain. Online sales rose 0.8 per cent. But business at building material and garden supplies fell 0.8 per cent. And sales at gas stations were down 2.2 per cent.
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