New Delhi [India], October 21 : The retail sector shows a growth of 5 per cent in September 2024 compared to the same period last year and is expected to grow more in the festival season, according to the Retailers Association of India's(RAI) 55th Retail Business Survey.
Kumar Rajagopalan, CEO of RAI, pointed out that consumer behaviour is evolving and said, "September's retail performance highlights that consumers are spending selectively. As we approach the festive season, this behaviour presents an opportunity for retailers to align their strategies with consumer expectations."
He added, "The retail landscape remains favourable for growth, and energizing consumer demand will be key to driving long-term success in the industry. Overall, the Indian economy seems to be nice and bullish and the conditions for the retail sector remain favourable as we move into the holiday season".
The survey highlighted regional differences in growth, with North India leading the way at a 7 per cent increase in sales, followed by the West and South, both registering a 5 per cent rise.
In contrast, East India saw a comparatively lower growth of 4 per cent. These regional variations underscore the need for retailers to tailor their approaches based on local consumer preferences and market dynamics.
Among various retail categories, food and grocery emerged as the top performers, with a significant 12 per cent year-on-year growth, reflecting consumers' prioritization of essential goods.
The jewellery segment also showed robust growth of 8 per cent, suggesting a rise in discretionary spending on luxury items. Meanwhile, categories such as consumer durables and electronics (6 per cent) and apparel and clothing (5 per cent) experienced moderate growth, indicating that consumers are making selective purchases.
On the other hand, certain categories struggled to gain momentum. Furniture and furnishing saw a slight decline of 1 per cent, while sports goods and beauty, wellness, and personal care recorded minimal growth of 1 per cent and 2 per cent, respectively.
The quick-service restaurant (QSR) segment posted a 5 per cent rise in sales, and footwear grew by 4 per cent, indicating stable demand in these areas.
The survey's findings suggest that consumers are willing to spend where they perceive value, and this trend could shape the strategies that retailers adopt as they prepare for the festive season.
The upcoming holiday period is traditionally a time of heightened consumer spending in India, providing a promising outlook for the retail industry.