 "FMCG")
Fast-moving consumer goods (FMCG), durables, and retail sectors have registered growth as inflation has dropped and rural markets are beginning to show signs of life, Financial Express (FE) has reported.
This comes after the difficult months of April-May when unseasonal rain, overstocking, and a slowdown in discretionary purchases had a negative impact on sales numbers, the report cited data from the retail intelligence platform, Bizom and Retailers Association of India (RAI).
Industry experts expect FMCG sales to grow by 4-5 per cent in June. On the other hand, sales of durables are expected to grow by 2-3 per cent. Additionally, supported by aggressive offers, sales and promotions by apparel, fashion and lifestyle product companies, retail sales are likely to increase by 8-9 per cent.
Chief of growth and insights at Bizom, Akshay D'Souza was quoted in the FE report as saying, “June is trending well from a secondary and tertiary sales perspective. This is heartening because it shows that there is demand on the ground and consumers are opening their purse strings.”
In a similar trend, apparel, and jewellery retail sales have also grown in May at 9 per cent. Quick-service restaurants and food and grocery retail registered a growth of around 7-8 per cent during the month, the FE report said.
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The footwear category grew as well but was not among the better-performing verticals with a year-on-year sales growth of 2-3 per cent in May.
The strong sales trend was also visible in online shopping patterns in the country. The end-of-season sales of Ajio and Myntra registered healthy sales as they offered deep discounts that went up to 50-90 per cent. Ajio announced that its sales were up 40 per cent this year versus last year, the report said.
Ajio rivals Mynta and Flipkart also saw impressive growth in their sales numbers, FE reported.
