Inflation Dampens Consumer Spending, Retail Sector Records Modest 5% Growth In December.

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India, 27th of January, 2025 : Retailers Association of India (RAI) has released its 57th Retail Business Survey, reporting a 5% growth in the retail sector from 2 December 2024 to 29 December 2024 compared to the same festive time period last year (4 December 2023 to 31 December 2023). The survey highlights key trends shaping various retail segments across different regions of the country.

Kumar Rajagopalan, CEO, Retailers Association of India (RAI), said, “RAI’s survey shows 5% growth in December. Inflation and other payment obligations for EMI etc. are continuing to weigh on discretionary spending. The wedding season provided some boost to categories like apparel and jewellery, but overall consumption remains subdued. Notably, QSR is showing early signs of recovery, offering a glimmer of optimism for the sector. With the Union Budget around the corner, the retail industry hopes for measures that address inflation and boost consumer confidence.”

The survey further reveals that South India experienced the highest sales growth at 6%, while West and North India each recorded a 5% increase. East India showed a growth of only 4%.

In terms of categories QSR registered the highest growth of 10%, followed by apparel, food & grocery and sports goods each showing growth of 7% compared to December 2023 period last year.

About RAI:

Retailers Association of India (RAI) is the unified voice of Indian retailers. RAI works with all the stakeholders for creating the right environment for the growth of the modern retail industry in India. It is a strong advocate for retailing in India and works with all levels of government and stakeholders with the aim to support employment growth and career opportunities in retail, to promote and sustain retail investments in communities from coast-to-coast, and to enhance consumer choice and industry competitiveness.

Visit: www.rai.net.in | Follow on Twitter: @rai_india