Retail Sector Soars: Insights from September's 5% Growth

The retail sector in India experienced a 5% growth in September 2024, with potential for further expansion during the festive season. Consumer behavior is evolving, with selective spending patterns, and regions like North India leading sales growth. The study highlights varying growth rates across retail categories, focusing on essentials and luxury spending.

The retail industry in India witnessed a 5 percent growth in September 2024 compared to last year, as per the Retailers Association of India's (RAI) 55th Retail Business Survey. The festive season is likely to drive further growth, with consumer behavior evolving towards selective spending, according to RAI CEO Kumar Rajagopalan.

Rajagopalan emphasized the importance of aligning retail strategies with changing consumer preferences to energize demand, critical for long-term industry success. The Indian economy appears bullish, with favorable retail conditions anticipated for the upcoming holiday season. Regional differences show North India at the forefront with a 7 percent rise in sales.

While food and grocery topped the retail categories with 12 percent growth, emphasizing the prioritization of essential goods, discretionary spending saw robust growth in jewellery at 8 percent. The QSR segment also grew by 5 percent, while furniture and furnishing dipped slightly by 1 percent. As consumers seek value, these trends may shape retailer strategies for the festive outlook.

(With inputs from agencies.)