Re­tail­ers Rake in the Moolah in June Quar­ter, Thanks to GST

Cos ad­vanced end of sea­son sales to liq­ui­date in­ven­tory ahead of the sin­gle tax roll­out

The Economic Times - - Brands: Creating Desire - Sa­gar.Malviya@ times­group.com

Mum­bai: Sales at In­dia’s listed brick-and­mor­tar re­tail­ers ex­panded be­tween 18% and 40% dur­ing the June quar­ter as the in­tro­duc­tion of the sin­gle pro­ducer levy caused the end of sea­son sales to be ad­vanced, lead­ing to pur­chases dur­ing a pe­riod that nor­mally wit­nesses muted buy­ing.

Same-store sales growth (SSG) at Shop­pers Stop rose to its high­est in nearly five years while Fu­ture Re­tail, Trent, Aditya Birla Fash­ion & Re­tail (ABFRL) and Arvind Brands posted 1221% in­creases, un­der­pinned by ag­gres­sive pro­mo­tions and steep dis­counts. Same-store sales com­pare growth at out­lets that have been open for over a year and are an im­por­tant in­di­ca­tor of con­sumer de­mand. “The per­for­mance is more de­mand or vol­ume led, which in­di­cates pos­i­tive sen­ti­ment of con­sumers. Also, com­pet­i­tive el­e­ment is less and over­all mar­ket con­di­tions are bet­ter,” said Fu­ture Group CEO Kishore Biyani. “We ex­pect to have even higher sales in the com­ing months backed by ef­forts in terms of mer­chan­dis­ing and pric­ing.” To be sure, most re­tail­ers saw de­mand rise dur­ing the January-March quar­ter due to fresh in­ven­tory and fewer dis­counted mer­chan­dise of big brands on on­line por­tals. But the growth last quar­ter was ro­bust due to deep dis­count­ing.

Most re­tail­ers slashed prices to liq­ui­date mer­chan­dise, ad­vanc­ing their usual end-of-sea­son sales, a move trig­gered af­ter the GST Coun­cil de­cided that man­made ap­parel above ₹ 1,000 will at­tract a 12% levy, higher than the ex­ist­ing 7%.

WED­DINGS BOOST SALES

“The month of April and May wit­nessed in­crease off-take, driven by the wed­ding cal­en­dar. June sales were driven by an early end of sea­son sale, which was ad­vanced by 15 days. This quar­ter, there­fore, cap­tures some of the EOSS sales that would nor­mally ac­crue in Q2,” S Visvanathan, chief fi-

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