RETAIL SECTOR
Retail loans moderate for the 10th straight month
The Reserve Bank of India reported that bank lending to the retail sector moderated for the tenth consecutive month in May, reaching 17.8% from 19.1% a year ago. Corporate loans grew faster at 8.9% compared to 6% in May 2023. Non-food bank credit saw a 16.2% growth in May 2024 compared to 15.5% a year ago.
Rise in value-seeking customers, key FMCG sectors face tampering of growth: Report
The report highlighted a significant shift in consumer spending patterns with a rise in value-seeking buyers, which is evident across consumer businesses. While the consumer may increase their spending on leisure activities, suggesting a good performance for the aviation and hotel industries in FY2024-25, it added.
Jigar Mistry on five sectors where investors can allocate fresh capital
Mutual funds, if you look at the smallcap number of folios, that has gone up 4x in under three years. We have now more smallcap folios than midcap or largecap number of folios.
RAI's Budget wishlist: Lower taxes for individuals, benefits on land rates, electricity
BUDGET EXPECTATIONS: The Retailers Association of India (RAI) has urged the Union Budget FY25 to focus on lowering individual taxes to boost demand and consumption. RAI's pre-Budget recommendations include low-cost financing, subsidies on land and electricity, and the adoption of supportive policies to strengthen the retail sector, which contributes 10% to India's GDP
Retailers report only 3% growth in sales in May
Retail businesses across regions have indicated growth in sales compared to May 2023, with South India showing the highest increase at 4%, followed by East and West India at 3% each, and North India at 2%.
S&P 500, Nasdaq hit record highs on AI momentum, Dow edges up after weak retail sales
The S&P 500 and Nasdaq hit record highs fueled by Nvidia's surge, overtaking Microsoft as the most valuable company. Chip stocks, including Qualcomm and Micron, rallied, boosting the Philadelphia SE Semiconductor index to a new peak.
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Fashion & Apparel sector emerge front-runners in India's retail landscape: JLL
The report further says a positive outlook in the organised retail market is seen post COVID-19, the sector has witnessed a surge in the launching of new infrastructural development across urban centres and emerging cities. In the first quarter of 2024 (Jan-Mar) 1.1 million square feet of retail spaces were leased.
Asia shares muted on mixed China data, euro pressure
Asian share markets softer on mixed Chinese economic data. European political uncertainty persists. Swiss National Bank may ease. Markets await U.S. retail sales and Fed speeches. French political risks weigh on euro. Gold and oil prices stable.
Stop, thief! Retail giants are facing a new 'lifting' problem - not just from customers, but also staff & vendors
Indian retail faces increasing shrinkage issues due to thefts and errors, with Trent Ltd reporting a rise in shrinkage to 0.41% of sales in FY24. V-Mart Retail's shrinkage increased from 0.4% to 0.5% in the same period.
5 world market themes for the week ahead
Central bank decisions in Britain, Switzerland, and Norway will show the rate cutting trend, while retail sales data from the US and China will indicate consumer health. Europe gears up for the Euros 2024 tournament in Germany. Investors are monitoring cocoa supply issues in Ivory Coast, Ghana, and other countries like Brazil.
Wall Street Week Ahead: Retail stocks search for direction as rates stay high
Elevated U.S. interest rates are impacting the U.S. retail sector, with some stocks soaring while others struggle. The S&P 500 Consumer Discretionary index is up 14%, driven by select stocks, like , which is up 21%. However, lower-income focused companies, like Dollar Tree and Dollar General, have faced declines.
Surprised by today's market rebound; expect near term caution in capex-led themes: Chris Wood
I think it is a bit premature to assume that because you have still got the horse trading. I mean, clearly the base case is that the current government remains in power with coalition partners and that is not a disaster. But the reality is the great virtue of the last 10 years has been clear government, consistent policies, and not having to worry about horse trading between parties, which is always a feature of coalition governments.
India’s retail realty expansion to continue led by urbanization, consumption growth
The top seven Indian cities--Mumbai, Delhi-NCR, Bengaluru, Hyderabad, Pune, Kolkata, Chennai--will add over 45 million sq ft of retail real estate through 88 new developments. This anticipated growth will outstrip the retail space supply from the past decade (2014-2023), which totaled around 38 million sq ft, showed data from JLL India.
Credit growth slows in April across major sectors
Bank credit growth is expected to moderate 200 basis points (one bps is 0.01 percent) to 14% this fiscal after an estimated robust growth of 16% in fiscal 2024, according to ratings firm Crisil. Strong economic activity and retail credit demand drove loan growth last fiscal. This fiscal growth will be tempered by a high base effect, a revision in risk weights and a somewhat lower gross domestic product growth, it said.
Retail cos, QSRs expand at slowest pace in 5 years
Retailers and quick-service restaurant chains in India experienced the slowest pace of store expansion in five years at 9%, with 33,219 stores as of March 31. In FY23, the number was 30,551, up 18% from the previous year. These companies added 2,700 stores, averaging 7 a day, but that's nearly half compared to 13 doors each day in FY23. Retail sales growth rate fell year-on-year every month in the previous fiscal, reflecting weak consumer sentiment across segments like apparel, footwear, and QSR.
EET Retail continues to expand fuel retail network
EET Retail, the retail division of EET Fuels, has reopened two new service stations in the UK, signaling a new era of convenience and service for the Essar consumer brand.
Next disruption? Reliance’s JioMart to enter quick commerce space to take on Blinkit, Zepto and others
Reliance Industries, led by Mukesh Ambani, plans to enter India's quick commerce sector, aiming to compete with Blinkit, BigBasket, Instamart, and Zepto. Initially targeting 7-8 cities, JioMart aims to expand to over 1,000 cities. Unlike rivals, it will leverage Reliance Retail's network instead of dark stores. Goldman Sachs estimates the online grocery market at $11 billion, with quick commerce accounting for $5 billion, possibly affecting kirana store sales.
RBI Guv Shaktikanta Das launches PRAVAAH, Retail Direct mobile app and FinTech Repository
The Reserve Bank of India (RBI) has launched three major initiatives to enhance regulatory processes, facilitate retail investment, and provide comprehensive data on the fintech sector. The PRAVAAH portal is a secure web-based platform for individuals and entities seeking authorizations, licenses, or approvals from the RBI. The RBI Retail Direct mobile application simplifies transactions for retail investors, and the FinTech Repository provides data on Indian fintech firms for better regulatory understanding and policy formulation.
Retail, ecommerce create job openings for freshers and experienced professionals
A recent report by GI Group Holding India reveals increasing job opportunities in retail and e-commerce, with retail seeking fresh hires and e-commerce targeting experienced professionals. Applications for retail jobs rose by 8% in 2023, driven by young talent aged 18-30. The logistics sector, crucial for delivery, is also thriving, especially in tier-1 cities.
Normal southwest monsoon augurs well for food production, easing price pressures, says FinMin in monthly review
In its review, the Finance Ministry also reiterated its faith in India's ability to deal with adverse pressures from geopolitical tensions, while continuing to make progress on its growth numbers. "The positive indications in the farm sector should help India firewall against any adverse pressures that may arise from geopolitical tensions and global commodity prices," the review from the Finance Ministry said.
Organised jewellery retailers likely to witness 17-19 pc revenue growth in FY25: Report
The report further stated that the working capital requirements of retailers might increase due to higher inventory levels resulting from the substantial rise in gold prices and new store additions. However, credit profiles should remain stable, it added.
Organised gold jewellery retailers to achieve strong revenue growth in FY25: CRISIL
A CRISIL Ratings report forecasts 17-19% annual revenue growth for organised gold jewellery retailers in fiscal 2025, driven by higher gold prices. Retailers plan marketing efforts to counter demand moderation. Operating profitability may slightly decrease due to increased inventory. Organised retailers will continue gaining market share, with stable credit profiles despite rising working capital debt.
Nexus REIT in talks to buy Marina Mall in Chennai
Nexus Select Trust in talks to acquire The Marina Mall in Chennai, developing a diverse portfolio with Grade-A malls in Hyderabad. Plans to double assets to 20M sq ft in 5 years, reflecting India's retail growth and mall consumption surge.
V-Mart expects to grow 18-19% this year, says Lalit Agarwal
Lalit Agarwal, Founder & MD of V-Mart Retail, aims for 18-19% growth in a value-driven retail sector. Improved footfalls and consumer demand in smaller towns are observed. Efforts focus on providing best products, prices, and catering to Gen Z preferences. The Limeroad acquisition's impact on online burn and future scale-up plans are under scrutiny.
Retailers report 4% growth in sales in April 2024
Retail sales in April 2024 increased by 4% compared to April 2023, according to a survey by the Retailers Association of India. However, the retail sector is not experiencing double-digit growth, as customers are cautious on non-essential items and splurging on capital purchases. Sales across regions showed growth, with QSR, food & grocery, and jewellery categories experiencing significant growth.
China April industrial output rises 6.7 y/y, beats expectations
China's industrial output grew 6.7% in April, surpassing expectations, with retail sales and fixed asset investment showing mixed results. Official data released on Friday by the National Bureau of Statistics (NBS) came above expectations for a 5.5% increase in a Reuters poll of analysts.
Sensex rises over 150 points as retail inflation eases; Nifty above 22,100
India's retail inflation eased in April, impacting key equity indices positively. Sectors like banking, metal, and energy saw gains, while some faced cuts. Shriram Finance surged over 5% on announcing a housing finance business sale to Warburg Pincus.
Why touchy-feely consumerism is here to stay and also thrive
The surge in e-commerce once signaled the demise of brick-and-mortar stores, but a notable shift is occurring as D2C companies expand offline. The trend extends beyond smartphones to FMCG and banking, with consumers favoring physical stores for premium items. Retailers are adapting by enhancing store sizes to provide immersive shopping experiences.
Deal activity on the rise in consumer & retail sector
India's consumer and retail sector experienced a surge in M&A and private equity deal activity in the March quarter. The sector recorded 102 deals valued at $1.74 billion, with a focus on acquisitions and investments in the food processing and healthy food market segments.
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