FMCG sales grew 5.4% post GST: Brickworks study

NEW DELHI: The fast moving consumer goods industry witnessed a jump of 5.37% in overall sales volume in the first week of July just after the implementation of the Goods & Services Tax ( GST), compared to the week before June 15 this year, a research survey by market research firm Brickworks said.

Brickworks said the survey captures both modern as well as general trade sales volume and that it was conducted among 2,262 retailers across Delhi, Mumbai, Kolkata, Chennai, Pune, Bangalore and Ahmedabad.

The top two growth categories were cereals and pulses which grew 9.2%, and tea and coffee which reported higher sales of 5.7%. Both milk and milk-based products and edible oils grew 3.7%, while chips and snacks grew 2.8%. However, categories which degrew were personal care products which showed volume sales decline of 7.9% and soft drinks which had lower volumes of 7.8%, according to the study.

However many retailers offered huge discounts on the pre GST stock to liquidity sales, the study added.