Inflation and other payment obligations for EMI continue to weigh on discretionary spending, as per the Retailers Association of India (RAI)
India’s retail sector has marked a five per cent growth from 2 December 2024 to 29 December 2024 compared to the same festive period last year (4 December 2023 to 31 December 2023), as inflation and other payment obligations for equated monthly instalments (EMI) continue to weigh on discretionary spending. The Retailers Association of India (RAI) revealed in its 57th retail business survey.
RAI stated that South India experienced the highest sales growth at 6 per cent, while West and North India recorded a 5 per cent increase during the same period. On the other hand, the growth in East India showed a growth of only 4 per cent.
“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,” stated Kumar Rajagopalan, Chief Executive Officer (CEO) of RAI.
As far as the category-wise sales growth is concerned, the QSR segment outperformed others by recording a 10 per cent growth on a YoY basis during the stated period. Apparel, food & grocery and sports goods each recorded a growth of 7 per cent YoY. However, the consumer durables and electronics managed to clock a 2 per cent YoY growth during the period. Footwear, too, grew by 3 per cent YoY, same as furniture and furnishing.
