A customer looks at consumable goods before buying them at a supermarket in Hyderabad
Credit: Reuters photo
Bengaluru: The retail sector grew by 5 per cent in September 2024 over the corresponding period in the previous year, according to a survey by the Retailers Association of India out on Monday, its 55th retail business survey.
Retailers hope that the Indian retail sector will show renewed vigour in the festive season, following a lacklustre growth period from April to September.
Food and grocery registered the highest year-on-year (YoY) growth of 12 per cent in September 2024, followed by 8 per cent in jewellery compared to September 2023.
Other categories saw less YoY growth such as consumer durables and electronics (6 per cent), apparel and clothing (5 per cent), quick service restaurants (5 per cent), footwear (4 per cent), beauty, wellness and personal care (2 per cent), and sports goods (1 per cent).
Meanwhile, furniture and furnishings saw a 1 per cent YoY decline in the same periods.
North India saw sales growth of 7 per cent, followed by West and South which showed an increase of 5 per cent each while East showed a growth of 4 per cent.
Kumar Rajagopalan, CEO, Retailers Association of India (RAI), said, “As we approach the festive season, this behaviour presents an opportunity for retailers to align their strategies with consumer expectations. The retail landscape remains favourable for growth, and energising consumer demand will be a key to driving long-term success in the industry”.
September’s retail performance highlights that consumers are spending selectively.
Meanwhile, fast moving consumer goods (FMCG) players such as Tata Consumers have shown muted growth in the second quarter of Financial Year 2025 (Q2 FY25), while players like Nestle India have reported a drop in profits from the same period last year.
In the midst of rising food inflation, selective demand and cautious spending from urban areas, and already low demand in rural areas which is recovering slowly, companies have presented low growth. Many of them are betting on premiumisation continuing with higher-priced products doing well as a growing trend.
While the festive season did not show high growth last year, analysts and retailers are optimistic about high growth this year which is already visible in the season so far, as per reports.