Green shoots of bounce-back showing in Q3 Retail Spends, Steady climb in Digital Payments usage
5 March 2020
RAI – Innoviti Retail Payments Insights report sheds new light
- Bengaluru, March 05, 2020: The Retailers Association of India and Innoviti Technologies unveiled the first volume of their quarterly publication on Retail Payments Insights. The report presents an overview of quarter-wise trends in store sales during the fiscal year 2019-20, in comparison corresponding period of fiscal year 2018-19 from the same cohort of stores.
- Based on the report data, overall same store sales growth trends across multiple sectors, including Food & Grocery, Fashion & Apparel, Consumer Durables & IT, Jewelry, Personal Accessories, Healthcare & Wellness and Entertainment indicate that growth in Q1(AMJ) FY19-20 was strong across retail sectors, with an overall blended growth of 11%. Q2(JAS) FY19-20 showed clear signs of slowdown across sectors with growth dropping to 3.6%. However, the latest available Q3(OND) FY19-20 data shows an emerging reversal of this slowdown with early signs of growth recovery, possibly fueled by the festival season discounts. Across regions, South and East zone growth has been relatively stronger across quarters, showing greater resilience to the slowdown.
- Mr. Rajeev Agrawal, CEO, Innoviti said “With nearly 5% of all India offline digital spends being processed through our pan-India spread of retail POS terminals, we at Innoviti have a unique bird’s eye view into emerging trends across retail categories. We are excited to partner with a renowned industry body like RAI to package this insight into regular volumes of the RAI-Innoviti Payments Insight Reports. We expect these ongoing quarterly trend reports to provide useful data insights to not just the Indian retail industry, but also broader economy watchers.”
- Mr. Kumar Rajagopalan, CEO, Retailers Association of India said, “RAI – Innoviti Technologies Insights aims to fill a critical gap about percentage growth in sales at category and zonal level. It gives an overview of the growth at grass roots as it is based on data collected from retail stores in 697 cities across 36 states. It gives a balanced view of how economic and macro-trends are impacting the sector based on customer payments data. The initiative is in line with RAI’s mandate of developing, facilitating and propagating practices that will help grow retail in India.” Across retail categories, spending on staples has shown much stronger reliance to the Q2 slowdown as compared to discretionary spend categories. Over the YTD period April 2019 to December 2019, Food & Grocery spends showed a growth of ~13% which is more than double the overall blended retail growth of ~6.5%. Comparatively, discretionary categories like Fashion/Apparels showed the effects of slowdown with growth averaging 2.8%.
- During the YTD period of April 2019 to December 2019, retail spends have also witnessed a steadily growing contribution of from digital payment modes as a percentage of overall store sales. In particular, digital payments contribution climbed between 4 -6% in South and East Zone, over and above a base volume growth of ~ 7.5%.
- The report incorporates samples from 36 states and union territories, 697 cities and sales by value of $10 B from a diverse collection of 20,230 modern and general trade stores. While computing growth trends, the same cohort of stores is considered between the same quarter of consecutive years. Sales trends considered include estimates of cash and all forms of digital transactions. The report will be published as a quarterly report with this first volume covering the period from April 2019 to December 2019.
About Retailers Association of India
Retailers Association of India (RAI) is the unified voice of Indian retailers. RAI works with all the stakeholders for creating the right environment for the growth of the modern retail industry in India. It is a strong advocate for retailing in India and works with all levels of government and stakeholders with the aim to support employment growth and career opportunities in retail, to promote and sustain retail investments in communities from coast-to-coast, and to enhance consumer choice and industry competitiveness.
About Innoviti Technologies Pvt. Ltd., Bangalore, India.
Innoviti Technologies runs a payment platform that has a unique ability to add intelligence to traditional payment channels, enhancing their value. Merchants, brands and financial service providers use these intelligent payment channels to reduce cost and drive sales of their products. Innoviti processes over Rs. 40,000 Cr. of payment transactions, about 6% of all offline merchant payment transactions in India. This also includes Rs. 1,500 Cr. of transactions involving distribution of loans to consumers and small businesses. The most capital efficient company in this space, Innoviti processes more volume for every $ raised than any other payments company. The company is backed by marquee investors such as Catamaran Ventures, SBI Venture Capital and Bessemer Venture Partners.
For more information, please visit – https://innoviti.com/