India’s retail sales recorded a 7% increase during the festive season from October 7 to December 1, 2024, compared to the same period in 2023, as revealed by the Retailers Association of India (RAI) in its latest Retail Business Survey.
West India led the charge with an 8% rise, while North, South, and East India saw a 7% increase each.
Top Performers Across Categories
Among product categories, food and grocery emerged as the top performer with a 14% growth, followed by quick service restaurants at 10%, jewellery at 9%, and consumer durables, electronics, and apparel at 7%. Other categories like footwear and beauty saw modest growth, while furniture lagged behind with a minimal increase.
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RAI CEO Kumar Rajagopalan noted that while the 7% growth during the festive season was promising, it fell short of the anticipated 10%. He highlighted that subdued consumption throughout the year pushed retailers to rely on promotions to drive sales. Rising operational costs, inflation, and limited spending by the lower middle-class segment remain significant challenges for the retail industry.
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Hope for a Better 2025!
Despite these hurdles, Rajagopalan expressed hope for stronger growth in 2025, emphasizing the importance of maintaining a steady growth trajectory to ensure profitability. As the apex body of retailers in India, RAI continues to work towards creating a favorable environment for the modern retail sector to thrive.
