CMS Info Systems reports 9.3% growth in retail consumption trends

CMS Info Systems on Wednesday reported a 9.3 per cent year-on-year (Y-o-Y) consumption growth in the April-September quarter of 2023 (H1FY24) in its retail consumption trends.

In data shared with Business Standard, the company said the Y-o-Y growth in the October and November period has been at 12.5 per cent, pointing at robust growth in the third quarter as well. Data for the entire quarter is not out yet.

The logistics and technology services provider revealed key consumption trends in the organised retail segment in H1FY24, through a comprehensive analysis spanning 11 consumer-facing sectors, such as large format retail, jewellery, FMCG, e-commerce, hospitality, and aviation, among others.

 

In the business to consumer (B2C) segment, the FMCG and e-commerce sectors experienced an annual increase of 26.2 per cent and 19.4 per cent respectively, during Q2-FY24, reflecting rising consumer demand in these sectors amid easing inflation.

Meanwhile, the aviation and hospitality sectors saw annual growth of 29.7 per cent and 12.8 per cent in the same period, reflecting increased demand for travel, driven by events such as the ICC Men’s Cricket World Cup. The jewellery sector, meanwhile, saw an annual growth of 7.1 per cent in contrast to a 4.6 per cent decline in the same time period from a year ago, suggesting higher spending triggered by the wedding season and a post-pandemic demand bounce-back.

The large format retail sector experienced an annual increase of 7.8 per cent in Q2-FY24, driven by factors such as rising incomes, urbanisation, and changing consumer preferences.

“The surge in retail consumption parallels the 7.6 per cent GDP growth in Q2FY24, boosted by easing inflation. Taking cues from these macroeconomic indicators, we expect a stronger consumption growth in Q3FY24, especially in FMCG, e-commerce, and aviation sectors,” said Anush Raghavan, president, cash management solutions at CMS Info Systems.

The company expects higher GDP and softening inflation to catalyse retail consumption growth in Q3FY24, also aided by the festival and wedding season.

Retail Consumption Trends by CMS is a macroeconomic indicator of retail purchases based on the cash collected and processed from more than 52,000 organised retail touchpoints across India.

Y-o-Y growth (in %)

Sector	H1FY24	Oct-Nov FY24*
FMCG	26.2%	52.9%
E-commerce	19.4%	40.2%
Aviation	29.7%	15.1%
Large format retail	7.8%	10.6%

* Data for the entire quarter is not available yet Source: CMS Info Systems