Retail sales at 72% of pre-Covid level; biz eye festive boost: RAI

IN TERMS OF CATEGORIES, QUICK SERVICE RESTAURANTS RECOVERED THE BEST IN JULY, RAI SAID

NEW DELHI: Retail sales across the country continued to recover in July, reaching 72% of the prepandemic levels of July 2019, and businesses are pinning hopes on the festive seasons for a further boost, Retailers Association of India (RAI) said on Tuesday.

According to the retailer’s body, the rate of recovery was 50% of pre-pandemic levels in June 2021.

In its latest business survey, RAI retail businesses in south India have indicated a very sharp comeback in July 2021 with sales at 82% of the pre-pandemic levels (July 2019), as against 50% sales in June 2021. However, west India is yet to improve, registering sales at 57% of pre-pandemic levels.

“This is mainly because of prolonged curbs in Maharashtra that disrupted the smooth functioning of modern retail in the state,” RAI said.

In terms of categories, quick service restaurants (QSR) recovered the best in July 2021 with sales at 97% of the pre-pandemic levels (July 2019). Yet, in July 2021, beauty and wellness, which includes salons, is still at 50% of pre-pandemic sales, while apparel is at 63% sales of the prepandemic levels. Commenting on the outlook, RAI chief executive officer Kumar Rajagopalan said, “There is a possibility of significant sales recovery for retail businesses as the festive season approaches, provided restrictions on modern retail are relaxed across the country allowing smooth operations and return to normalcy.” RAI said.