Independence Day sales surge up to 25% year-on-year

Independence Day sales surged up to 25% in value and 5-7% in volume across categories compared to last year, setting a positive tone for the festive season, according to the Economic Times. Reliance Retail clocked its best Independence Day sales with over 20% growth, while Lifestyle reported double-digit growth and Vijay Sales posted over 20% growth. Several iPhone and television models sold out on Flipkart, and Super Plastronics sold out its entire TV inventory on Amazon and Flipkart, with CEO Avneet Singh Marwah saying growth could have been 20% if stock had been available.

A Mint analysis of the April-June quarter noted that rural consumption, premium FMCG, quick commerce and consumer durables were the strongest performers. HUL said rural growth had accelerated in recent quarters. Quick commerce remained a bright spot, with Eternal (Zomato's parent) reporting a 268% year-on-year jump in consolidated profit. However, higher raw-material costs affected some segments: soap and detergent makers faced a 15% rise in linear alkyl benzene, while Marico benefited from a 45% fall in copra prices.

Companies expect growth to strengthen through the August-November festival season. Blue Star managing director B Thiagarajan said demand revival is expected from late August. Food inflation remains a concern, rising to 4.45% in July. The key test, Mint notes, is whether stronger consumption can offset input-cost pressures and sustain the recovery beyond the festive season.