Indian retailers reportedly recorded growth between 18 per cent and 40 per cent during the April-June quarter, considered as a muted buying period, due to Pre-GST sale and wedding season. Deep discounting announced in view of the new tax regime roll-out propelled consumers to shop more in the otherwise dry season.
The aggressive promotions and steep discounts helped retail giants like Future Retail, Trent, Aditya Birla Fashion & Retail Limited (ABFRL) and Arvind Brands to note a 12-21 per cent increase in their sales during the quarter under review. Shoppers Stop’s Same-store Sales Growth (SSG) rose to its highest in nearly five years.
Additionally, the retailers further extended their End of Season Sale, which came early due to demonetization in November last year. The sale period was extended citing the GST Council’s announcement of including man-made apparels (above Rs. 1,000) under 12 per cent slab as compared to around 5 per cent in the previous taxation system.
Future Group CEO Kishore Biyani is optimistic about the positive sentiment of consumers in the time ahead and overall market condition. In view of these factors supported by efforts in terms of merchandising and pricing along with the festive season approaching, Mr. Biyani hopes for an increase in sales in the coming months as well.
