ICRA upgrades retail sector outlook to stable from negative

Credit rating agency ICRA NSE -0.80 % has upgraded retail sector outlook to stable from negative; and said the sector likely to witness 12-13% YoY revenue growth in FY2023, with a YoY increase in operating profit margins by 150 bps to 8.2%.

The level of discounting by the retail industry remained low during FY2021 and FY2022 (compared to FY2020) as retailers attempted to protect their gross margins against the backdrop of reduced sales.