Retail Sector in India Grows 5% in September 2024
The retail industry in India experienced a 5% growth in September 2024 compared to the same month last year, according to the Retailers Association of India’s (RAI) 55th Retail Business Survey. This growth is expected to continue during the upcoming festive season.
Consumer Behavior and Retail Strategies
Kumar Rajagopalan, CEO of RAI, noted that consumer behavior is changing, with people spending more selectively. He emphasized the importance for retailers to align their strategies with consumer expectations to capitalize on this trend. Rajagopalan stated, “The retail landscape remains favorable for growth, and energizing consumer demand will be key to driving long-term success in the industry.”
Regional Growth Variations
The survey revealed regional differences in growth, with North India leading at a 7% increase in sales. The West and South regions both saw a 5% rise, while East India experienced a lower growth rate of 4%. These variations highlight the need for retailers to adapt their strategies to local consumer preferences.
Performance Across Retail Categories
Among retail categories, food and grocery saw the highest growth at 12%, indicating a focus on essential goods. The jewellery segment grew by 8%, showing increased spending on luxury items. Consumer durables and electronics grew by 6%, and apparel and clothing by 5%, reflecting selective consumer purchases.
Some categories faced challenges, with furniture and furnishing declining by 1%, and sports goods and beauty, wellness, and personal care growing minimally by 1% and 2%, respectively. The quick-service restaurant segment and footwear both showed stable demand with a 5% and 4% increase in sales, respectively.
Outlook for the Festive Season
The survey suggests that consumers are willing to spend where they see value, which could influence retailer strategies during the festive season. This period is traditionally marked by increased consumer spending in India, offering a positive outlook for the retail industry.
Doubts Revealed
Retail Sector -: The retail sector includes all the shops and businesses that sell products directly to people. This can be anything from clothes and food to electronics and furniture.
5% Growth -: A 5% growth means that the retail sector sold 5% more products or made 5% more money compared to the same time last year.
North India -: North India refers to the northern part of India, which includes states like Delhi, Punjab, Haryana, and Uttar Pradesh. This region saw the highest increase in retail sales.
Festive Season -: The festive season in India includes important festivals like Diwali and Dussehra, when people often buy more gifts, clothes, and sweets, leading to increased shopping.
Retailers Association of India -: This is a group that represents the interests of retail businesses in India. They conduct surveys and provide information about how the retail market is doing.
Food and Grocery -: This category includes all the food items and daily essentials that people buy from stores, like vegetables, fruits, and packaged foods.
Jewellery -: Jewellery refers to items like necklaces, rings, and bracelets made from precious metals and stones, which people buy for personal use or as gifts.
Furniture Decline -: A decline in furniture sales means that fewer people bought furniture like chairs, tables, and beds compared to the previous year.
CEO Kumar Rajagopalan -: Kumar Rajagopalan is the Chief Executive Officer of the Retailers Association of India, responsible for leading the organization and making important decisions.
Consumer Behavior -: Consumer behavior refers to the way people buy and use products. It can change over time based on trends, preferences, and economic conditions.
