JOIN USRetail industry sees recovery; July sales at 72% of pre-pandemic level
The retail industry has seen a sharp comeback in sales during July 2021 with the opening up of markets post-second Covid wave across key markets in the country.
According to the 18th edition of the Retail Business Survey by the Retailers Association of India (RAI), retail sales in July 2021 were at 72% of the pre-pandemic levels (July 2019), compared to 50% in June 2021.
Retail businesses in the southern part of the country have indicated a very sharp comeback in July sales at 82% of the pre-pandemic levels (July 2019), as against 50% in June 2021. Among the categories, Quick Service Restaurants (QSR) recovered the best in July sales at 97% of the pre-pandemic levels. However, beauty & wellness, which includes salons, is still at 50% of pre-pandemic sales, while apparel is at 63% of the pre-pandemic levels in July 2021.
"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," Kumar Rajagopalan, CEO, RAI, said.
Retail is the fastest growing sector in terms of employment generation, and second only to agriculture in terms of the number of people it directly employs, besides creating indirect employment opportunities. The opening up of retail will give businesses a chance to recover, saving the livelihood of millions who are dependent on the retail ecosystem, he said.
West of India is yet to improve and has indicated sales at 57% of pre-pandemic levels (July 2019) against 50% in June 2019. It is mainly because of prolonged curbs in Maharashtra that disrupted the smooth functioning of modern retail in the state.