The retail sector grew 8 per cent year-on-year in July, reflecting recovery in demand momentum driven by need-based purchases, according to estimates by the Retailers’ Association of India. The growth was driven by quick service restaurants and the food & grocery segments, with retailers in the Southern and Northern regions posting higher growth than the pan-India average.

The industry body said genuine store-level demand recovering to 7.1 per cent growth in July was also visible, as per a recent analysis done in its SANKET report in association with Innoviti.

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 big-ticket purchases are 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, including getting inventory in place, executing staffing requirements, and having offers timed for the customer who buys on routine most of the year, but saves the bigger decisions for the season that’s built for them.”

However, sales growth in July varied sharply. While retailers in the Northern and Southern region recorded 9 per cent sales growth each, the West and East grew more moderately at 6 per cent each.

Habit-led categories such as quick service restaurants (13 per cent ) and food and grocery (12 per cent) led the pack in terms of growth trajectory in July this year, compared to the same period last year. Footwear category sales grew 10 per cent, while the apparel segment grew 8 per cent. Consumer durables and electronic sales were up 7 per cent, jewellery sales were up 6 per cent, and sports good sales were up 4 per cent. However, furniture and furnishing grew by a mere 1 per cent.

“With Q1’s softness now behind the sector and July showing recovery on both the overall and store-level measures, RAI’s reading is that retailers enter the festive season from a firmer base than the one they were standing on three months ago, though the categories that will matter most this festive season i.e. big-ticket purchases are still growing well below the categories built into daily routine,” it added.

Published on August 24, 2026