The retail sector is estimated to recover nearly 80% of pre-Covid sales amounting to $780 billion by the end of the calendar year, according to consulting firm RedSeer’s ground zero series findings.
The revival will be led by the essentials/grocery category that accounts for 65% of the sectoral share.
“The essentials category, largely driven by the kiranas, is already operating at pre-Covid levels,” Mrigank Gutgutia, director at RedSeer, told FE.
India’s expansive network of 12 million kirana stores kept the supply of essentials to households intact during the pandemic-induced lockdown even as online companies and organised players struggled in the initial days due to operational restrictions. Companies such as JioMart are tapping into kiranas to deepen their consumer reach.
Gutgutia said the non-essential segment has picked up, and as more stores commence operations, recovery should get a leg-up. The category is expected to close the year with about 60-70% of last year’s sales.
Retailers are betting on the festive season to spur consumption of non-essentials that has otherwise remained sluggish for the best part of the year. The month-long period begins with Navaratri, scheduled to start on October 17 this year and ends with Diwali.
Source: Financial Express