Retailers see modest 7% growth during 2024 festive season sales: RAI

Retailers in India reported a modest 7 per cent growth in sales during the 2024 festive season compared to last year, according to a survey by the Retailers Association of India (RAI).

 

This growth fell short of the anticipated 10 per cent, reflecting subdued consumption throughout the year.

 

“Retailers worked hard to boost sales with promotional offers and festive deals, but the overall growth remained moderate,” said Kumar Rajagopalan, CEO of RAI.

Food and grocery grow by 14 per cent

Among various categories, food and grocery grew by 14 per cent, driven mainly by increased consumer purchases of staples, food, and beverages during the festive season. Quick-service restaurants recorded a 10 per cent growth. Apparel and jewellery, which had benefited from a festive season sales upswing, grew by 7 per cent and 9 per cent respectively. Consumer durables recorded a modest growth of 7 per cent, while the beauty, wellness & personal care segment registered a modest growth of 5 per cent.

 

West India records highest regional growth

West India recorded the highest regional growth at 8 per cent, while North, South, and East India saw a 7 per cent rise each.

 

Rajagopalan expressed optimism for stronger growth in 2025, but highlighted challenges such as inflation, rising operational costs, and limited spending, especially among the lower middle-class population.

 

Retailers are now looking ahead, hopeful that the next year will bring better business opportunities.