Retail sector logs 10% growth in August on stable consumer demand: RAI survey
- IBEF
- September 24, 2026
India’s retail sales grew 10% year-on-year in August 2026, marking a strong recovery in consumer demand as the festive shopping season approaches, according to the Retailers Association of India’s Business Survey Round 74. Retail growth accelerated from 7% in April to 5% in May, 6% in June, 8% in July and 10% in August. West India recorded the highest regional growth at 11%, followed by South India at 10%, North India at 9% and East India at 8%. The August performance indicates strengthening retail activity ahead of one of the sector’s key trading periods. The growth was led by quick-service restaurants, which recorded 15% year-on-year growth, followed by food and grocery at 12%. Apparel sales increased 10%, while footwear recorded 8% growth. Consumer durables and electronics registered 7% growth, highlighting broad-based improvement across major retail categories.
According to Mr. Kumar Rajagopalan, Executive Director and CEO, Retailers Association of India, the retail sector has recorded an encouraging rebound since July after softer momentum earlier in the year. The festive period is also influencing consumer and brand activity, with cited festive-season data indicating that around 60% of annual advertising expenditure typically takes place between August and December. Consumer purchasing activity is also beginning earlier, with 45% of Indian consumers reportedly starting festive shopping two to three weeks before the peak period, while another 37% begin around a month earlier. This trend provides retailers with a longer period to convert consumer interest into purchases and strengthens the importance of inventory planning and execution. With retail growth reaching 10% in August from 5% in May, the sector enters the festive season with improving momentum across regions and categories, supported by rising demand for food and grocery, apparel, footwear, consumer durables and quick-service restaurants.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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