Retail Growth Gains Momentum Ahead of Festive Season, RAI Survey Finds
India’s retail sector recorded 8% year-on-year growth in July 2026, according to the Retailers Association of India (RAI) Business Survey Round 73. The growth was led by everyday, needs-based categories, signalling improving retail momentum as businesses prepare for the upcoming festive season.
The latest survey follows RAI’s SANKET report, developed in partnership with payments technology company Innoviti, which recorded 7.1% growth in store-level demand in July, marking its strongest month of the quarter. Together, the two reports indicate a recovery in retail activity following a softer first quarter.
North and South Lead Regional Growth
Retail performance varied across regions during July. The North and South recorded 9% growth each, emerging as the strongest-performing regions in the survey. The West and East registered 6% growth each.
The regional performance broadly reflected trends observed in the SANKET data. The South remained the strongest zone through the quarter, while the West experienced the sharpest decline during Q1 before recording the strongest rebound in July.
Food, Grocery and QSRs Drive Growth
Category-wise performance highlighted the continued strength of routine-driven purchases. Quick service restaurants (QSRs) grew 13%, followed by food and grocery at 12%.
Other categories recorded the following growth:
- Footwear: 10%
- Apparel: 8%
- Consumer durables and electronics: 7%
- Jewellery: 6%
- Sports goods: 4%
- Furniture: 1%
While everyday categories continued to perform strongly, more discretionary and high-value segments recorded relatively slower growth. Furniture was the weakest-performing category at 1%, while jewellery and consumer durables and electronics grew at 6% and 7%, respectively.
Retailers Enter Festive Season on Stronger Footing
With the softness seen during Q1 now easing, July’s recovery across both overall retail growth and store-level demand provides a stronger starting point for the festive season. However, RAI noted that several big-ticket categories that typically benefit from festive purchasing are still growing below routine-led segments.
Kumar Rajagopalan, Executive Director and Chief Executive Officer, Retailers Association of India, said, “July gave us two confirmations at once: topline growth held up, and genuine store-level demand, which had softened through the summer, came back with it. That matters heading into the festive season, because the big-ticket purchases are exactly the ones festive buying tends to unlock. The base retailers are working from this year is stronger than it was in April or May. Retailers are entering the festive season with optimism, anticipating stronger consumer demand. The job over the next few weeks is preparation i.e. inventory in place, staffing ready, and offers timed for a customer who buys on routine most of the year but saves the bigger decisions for the season that’s built for them.”
The latest RAI findings suggest that retailers are heading into the festive period with improving consumer demand, stronger store-level activity and greater confidence, while preparations around inventory, staffing and festive promotions are expected to remain key to converting seasonal demand.
