Retail Sales Grow 8% In September 2026 Ahead Of Festive Season: RAI Business Survey West India Leads Regional Growth At 10%, While QSR, Food & Grocery And Apparel Emerge As The Strongest-Performing Categories.

Mumbai, Maharashtra, 22nd of October, 2026 : India’s retail sector recorded 8% year-on-year growth in September 2026, according to the Retailers Association of India’s (RAI) Business Survey Round 75. With the major festive celebrations falling later this year compared with 2025, the findings indicate continued positive consumer spending ahead of the main festive shopping period.

The shift in the festive calendar is particularly important when assessing September’s performance. In 2025, Navratri began on September 22, followed by Dussehra on October 2 and Diwali on October 20. In 2026, Navratri began on October 11, Dussehra fell on October 20, and Diwali falls on November 8. As a result, September 2025 included the beginning of festive buying, whereas September 2026 largely represented the pre-festive period.

RAI’s business surveys in 2025 had recorded 7% growth in May, followed by 8% each in June and July, ahead of the main festive season. September 2026’s 8% growth therefore provides an encouraging indication of retail demand at a comparable stage ahead of the festivities, although differences in the reporting periods mean the figures are not directly equivalent.

In September 2026, West India led regional sales growth at 10%, followed by South India at 9%. North India recorded 7% growth, while East India registered 5%. All four regions maintained positive year-on-year growth, reflecting continued consumer spending across the country.

Among retail categories, Quick Service Restaurants (QSR) recorded the highest growth at 11%, followed by Food & Grocery and Apparel & Clothing at 9% each. Beauty, Wellness & Personal Care and Consumer Durables & Electronics registered 7% growth each, while Sports Goods and Jewellery grew by 6%. Footwear recorded 5% growth.

Compared with August 2026, when overall retail sales grew by 10%, growth rates eased across several categories. QSR growth moved from 15% to 11%, Food & Grocery from 12% to 9%, and Apparel & Clothing from 10% to 9%. Consumer Durables & Electronics maintained its growth rate at 7%. While these figures indicate a moderation in the pace of year-on-year growth, the shift in the festive calendar means the full impact of seasonal demand will become clearer in the subsequent months.

Commenting on the findings, Kumar Rajagopalan, Chief Executive Officer, Retailers Association of India (RAI), said:

“Retail sales growth of 8% in September is encouraging, particularly when viewed in the context of this year’s festive calendar. Last year, Navratri began in September, whereas this year the celebrations commenced in October, with Diwali falling in November. September’s performance therefore largely reflects pre-festive consumption, while the corresponding period last year had already seen festive buying begin. The continued growth across regions and categories provides a positive foundation for the weeks ahead. A supportive policy environment, together with the retail industry’s continued focus on value, product availability and customer experience, will be important in sustaining this momentum. We remain optimistic about the festive season, while recognising that October and November will provide a more complete picture of consumer demand.”

With the festive shopping period extending further into November this year, retailers will be closely watching consumer spending across discretionary and essential categories. The September findings provide a positive starting point, while the coming months will offer greater clarity on the overall strength of festive consumption.

About Retailers Association of India (RAI)

The Retailers Association of India is the national body representing India’s retail industry across all channels and formats, from large format and specialty retail to e-commerce, quick commerce, and connected commerce businesses. RAI works with governments, regulators, and industry stakeholders to enable a competitive, innovation-friendly retail ecosystem. Through policy advocacy, industry events, research, and learning programmes, RAI builds the conditions for retail to grow, invest, and create employment at scale. India’s retail future is connected. RAI is building for it.