Retail sales in October jump 15% from year-ago, 19% from pre-pandemic levels: Survey

Ease of doing business for MSMEs: Kumar Rajagopalan, CEO at RAI said the removal of pandemic-related restrictions has resulted in the all round growth of retail businesses across regions and categories.

retail sales
The September retail sales growth stood at 21 per cent as compared to September 2019 before Covid.

Ease of doing business for MSMEs: Retailers including micro, small and medium units across the country saw 15 per cent growth in sales in October in comparison to the year-ago period and 19 per cent vis-a-vis the pre-pandemic sales level as of October 2019, said the latest retail business survey by retail body Retailers Association of India (RAI) on Monday. The September retail sales growth stood at 21 per cent as compared to September 2019 before Covid.

Kumar Rajagopalan, CEO at RAI said the removal of pandemic-related restrictions has resulted in the all round growth of retail businesses across regions and categories. However, in order to understand the complete impact of the festival season on retail sales, it is essential to see the figures for October and November combined, he added. “We would await the results for the month of November to draw definitive conclusions. However, all the signs indicate a positive trend.” 

The survey showed retailers across regions registering growth in sales as compared to pre-pandemic levels with West India signalling a growth of 25 per cent followed by South India and East India with a growth of 18 per cent each and North India at 14 per cent as compared to sales levels in October 2019.

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Category-wise, consumer Durables and electronics showed 38 per cent growth followed by Quick Service Restaurants with 33 per cent growth as compared to October 2019 sales.  Other categories such as sports goods and food & groceries continued to indicate sales growth at 30 per cent and 23 per cent sales respectively from pre-pandemic levels. 

For the uninitiated, retail traders apart from wholesale traders were brought back under the MSME definition in July last year by the government to provide priority sector lending benefits to them. 

According to the RBI data, bank credit to retail and wholesale trade in September had recorded a 21 per cent growth to Rs 7.45 lakh crore from Rs 6.96 lakh crore during September 2021. Banks had deployed Rs 3.68 lakh crore to retailers. The retail trade credit grew by 19.6 per cent in comparison to 2.7 per cent during the year-ago period, indicating uptake in credit post their inclusion in the MSME category.

Also read: Sustainability: Indian SMEs lead key Asian markets in according high priority to ESG measures in business

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First published on: 14-11-2022 at 18:06 IST
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