Retail in Asia

In Markets

India’s retail sees slowdown pangs as shoppers curb spends

India’s retail sector is feeling the pinch of economic slowdown as customers cut spends on discretionary items such as apparel and durables, amid lower salary hikes and high inflation. Shoppers are now saving every rupee they can, say retailers and consultants.

Same-store sales (SSS) growth of retail chains, a key indicator of performance, has indicated slowdown. SSS growth refers to the growth coming from stores in the business for a year or more.

The SSS growth of Pantaloon Retail in value terms declined 0.2 percent in the September quarter, the highest in the last 15 quarters. SSS growth in the home segment saw a dip of 3.5 percent, while lifestyle was better at 10.8 percent. The company said it was due to shift in the festive season from September to December. Even Jubilant FoodWorks Ltd, the franchisee of Domino’s and Dunkin’ Donuts in India, has seen its SSS growing 16 percent in the third quarter, compared to analysts’ estimate of 20 percent. Shoppers Stop stood out with 13 percent SSS growth in the third quarter. However, analysts expect SSS growth of retailers in mid singles in the coming quarters.