Retail Sector Q1 Results Review And Outlook - Consumer Sentiment Remain Sluggish: Axis Securities

Axis Securities Report

Consumer demand remains sluggish:

Prolonged heat waves, a slowdown in discretionary spending, and a lighter wedding season in Q1 have kept consumption demand in the discretionary space subdued.

Premium versus Value:

While the premium segment remains strong, the value segment has shown some recovery but remains a mixed bag.

Going forward, volume growth is expected to pick up in rural regions, driven by a better monsoon and rural recovery.

Store expansion continues:

Despite a challenging environment, most companies in our coverage universe have maintained or increased their store opening guidance as they expand into smaller towns, with long-term growth levers remaining strong.

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