Retailers overcome slow start, to grow in double digits in Q4

Listed retailers across apparel, lifestyle products, restaurants, and supermarkets are reporting double-digit revenue growth year-on-year for the March quarter despite a slow start due to the Omicron wave, with reopening of offices and schools, and weddings driving demand.
While their revenues in the quarter could still be lower than the sequential December quarter when festival demands and discount offers boosted their sales, most retailers expect their sales to pick up further in the new fiscal.

"Target segment's disposable income is higher than what it was two years ago, which is causing consumption to go up," Shoppers Stop managing director Venu Nair told analysts recently. "The number of wedding events is starting to go up. School and offices are opening, which will require a wardrobe reboot. Consumption of beauty and kids' clothes will be back. So, the next six months will be rosy for us," he added.


ICICI Securities expects apparel brands and retail companies such as Trent, Aditya Birla Fashion and Retail, VMart, Shoppers Stop, and TCNS Clothing Company to post more than 20% YoY revenue growth in the March quarter, backed by healthy store additions.

The emergence of the third wave of Covid-19 in December and consequent restrictions on operations of malls, multiplexes and restaurants had an impact on their sales in January, restricting revenue recovery at 60% of pre-Covid levels, according to an ICICI Securities report. February improved with 80-85% recovery and March saw an even higher surge, it said.

Titan said its watches business grew 12% in the March quarter while jewellery fell 4% due to a sharp increase and volatility in gold prices and uncertainty due to a geopolitical situation. The Tata-owned retailer is positive about demand in the first quarter of 2022-23. "The demand continued to be strong across all of its businesses with most segments posting year-on-year growth over a very strong Q4 FY21 base," Titan said.