RAI survey shows retail sales grew 6 per cent in June as consumers prioritised groceries, dining and value purchases ahead of the festive season
India’s retail sales grew 6 per cent year-on-year in June 2026, with spending on essentials and affordable discretionary categories such as dining out and footwear helping sustain demand even as consumers remained cautious about larger purchases, according to the latest Retailers Association of India (RAI) Business Survey.
The survey indicates that Indian consumers continue to spend selectively, favouring everyday necessities and lower-ticket purchases over high-value discretionary items. Food & Grocery emerged as the fastest-growing retail segment with 10 per cent year-on-year growth, followed by Quick Service Restaurants (QSRs) at 9 per cent and Footwear at 8 per cent. Consumer Durables & Electronics recorded 7 per cent growth, while Jewellery and Apparel & Clothing each expanded 6 per cent. In contrast, Furniture & Furnishings posted just 1 per cent growth, highlighting subdued demand for big-ticket purchases.
“The June 2026 survey highlights cautious retail landscape. While the intent to spend remains intact among Indian consumers, they are highly value-conscious, prompting retailers to pivot strategies quickly to sustain growth. Retailers are adapting with sharp value and efficiency and preparing for the upcoming festive season,” said Kumar Rajagopalan, Executive Director and Chief Executive Officer, RAI.
Regionally, West India outperformed the rest of the country with 8 per cent sales growth, followed by North India at 7 per cent. East and South India each reported 6 per cent growth, reflecting broad-based retail resilience across markets.
The findings suggest retailers are adapting to increasingly value-conscious consumers by focusing on promotions, disciplined inventory management and digital capabilities. Investments in technology-enabled decision-making and omnichannel retailing are also helping businesses improve customer engagement and operational efficiency as they prepare for the festive shopping season.
