Retail sales increase more than 50% year-on-year; chains predict expansion as Covid situation improves
The number of new cases of COVID-19 is decreasing every 24 hours, and market traffic is increasing at the same time. This gives a boost to the economy ravaged by the pandemic.
The government is basing its hopes on increased vaccination which it believes will boost the economy.
Minister of State for Finance Pankaj Chaudhary in Lok Sabha said: “The Indian economy shows signs of recovery from the peak of the second wave of COVID in the first half of May thanks to targeted budget relief, a strong surge in capital spending and a rapid vaccination campaign. ”
Stating figures, he said: “India’s real gross domestic product (GDP) is expected to grow 0.5% in the third quarter and 1.6% in the fourth quarter of 2020-21, which will lead to a upward revision of annual real GDP growth from (-) 8.0% (2nd forecast) to (-) 7.3%.
Businesses see a silver lining with many businesses now growing.
FABINDIA: DEPLOYING ITS WINGS
Fabindia is expanding her footprint. With 312 stores towed across India, the company has now opened a concept store at Khan Market. He plans to open 30 new stores this year.
The new concept store spans 1900 square feet in the heart of the nation’s capital. It was created and organized to provide a holistic lifestyle experience.
Speaking to India Today, Group Leader (Brand & Community) Dipali Patwa espoused faith in growth over the next few days.
She said: “Currently, interior design contributes 15-20% of the company’s revenue, our goal is to increase its share to 35% of its revenue.
“Interior decoration is now a high growth category for Fabindia”, she added.
FABINDIA: CONFIDENT TO RETURN TO THE REQUIRED RUN-RATE
Fabindia thinks she can get back to the required run-rate. According to Patwa, COVID has been a failure for all major retailers, but with all the new initiatives underway in digital, social commerce, fabindia.com, home shopping services and experiential retailing. , they are convinced to turn the tide in the months to come. .
The launch of its concept store is also part of the company’s broader strategy to be an experiential retail player rather than just a clothing and home decor retailer.
Over the next two years, the company will open more experience centers where customers get personalized offers and the option to dine in their Fabcafe. “We will remain focused on an experiential retail model where the goal is that there are also services beyond the immediate need to shop,” Patwa said.
Fabindia is proud to connect more than 55,000 artisanal rural producers to urban markets. The brand creates jobs for artisans while preserving the country’s traditional craftsmanship.
NEW JEWELERY IN THE SOUTH EXTENSION
PP Jewelers by Pawan Gupta, with its flagship store at Karol Bagh in New Delhi, has opened a sprawling showroom at Tony South Extension. The store aims to target the niche audience in South Delhi and Pawan Gupta believes the worst is behind us and now people will start splurging on jewelry, especially during the upcoming holiday and wedding season. He is basing his hopes on an increase in vaccinations.
Speaking to India Today, he said: “We have been looking to expand for the past 2 years, but our factories are going downhill due to the first and second wave, but I firmly believe that we will see a rebound. in the coming months.”
“We are already seeing an increase in the number of dating which has increased by 60% in recent weeks. On the one hand the number of cases is decreasing and on the other hand we are seeing sales increase,” he added.
The new showroom is spread over 3 floors and covers an area of 10,000 square feet
“The past two years have been a complete failure for the industry. During the first wave, people were afraid of not knowing what the virus could do and because of that, they were reluctant to spend their money. We saw a slight increase in sales after the first wave stirred, but the second wave also caused immense psychological damage, ”he added.
RETAILERS WHO WANT TO OPEN 20-30 STORES THIS YEAR
Retailers such as Tanishq and Shoppers Stop plan to add 10 to 35 stores this year.
Ajoy Chawla, CEO of Titan Jewelery Division, said: “We are very confident in our expansion plans. Our expansion plans were postponed last year due to Covid, but those plans are on track now. Work on new stores has started.
Before the second wave of infections, Tanishq planned to open 35 stores this year. “Now post this wave, we will always try to push as much as possible,” Ajoy added.
The Shoppers Stop retail chain follows the further expansion. The chain is expected to open 11 stores this year.
“In terms of store openings, we opened one last year. In our plans for this year, we had 11 stores that were due to open. But most were unable to open because the construction activity s ‘was stopped “, Venugopal Nair, MD & CEO, Shoppers said Stop Ltd.
With stores opening across the spectrum, businesses are hoping the next few months will be good. Most are banking on an increase in vaccinations and people following appropriate behavior for COVID-19.
Anarock, a retail consulting firm, said in its latest report that brands have stepped up their expansion into main streets. Retail brands have entered into more than 120 rental contracts in major markets in Indian cities between April 2020 and May 2021.
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