Food and grocery topped the category chart at 14 per cent, followed by apparel at 13 per cent, jewellery at 12 per cent and quick service restaurants (QSRs) at 11 per cent
Closing the financial year 2026 on a steady note, retail sales grew 10 per cent on a year-on-year (YoY) basis in March 2026 across India, as per the survey by the Retailers Association of India (Rai).
The 69th round of Rai’s business survey revealed that retail has been growing at 9 to 10 per cent since about six months. Regional performance was broad-based. West and North India led at 11 per cent each. On the other hand, the growth in South India was at 10 per cent, while the industry in the eastern region grew 9 per cent, as per the report.
“March 2026 closed FY26 on a stable, moderately strong note. Food, apparel, QSR and jewellery led the way, consumer durables lagged amid big-ticket caution. Global uncertainty and rising input costs, energy, logistics, real estate, created moderate pricing pressure across categories. The consumer is more purposeful today than two years ago. Retailers who match that shift with the right product at the right value will grow. FY27 will reward precision over scale,” stated Kumar Rajagopalan, Executive Director and Chief Executive Officer (CEO), Rai.
The report pointed out that food and grocery topped the category chart at 14 per cent, followed by apparel at 13 per cent, jewellery at 12 per cent and quick service restaurants (QSRs) at 11 per cent, the latter having sustained strong growth throughout the full year. On the other hand, consumer durables remained under pressure, with like-for-like growth of just 1 per cent, as consumers continued to defer big-ticket purchases.
The association noted that cost pressures are shaping the outlook for FY27. Rising energy costs, logistics expenses and real estate rentals are compressing margins even as top lines grow. Physical footfalls have moderated, but conversion is improving, walk-ins are more purposeful, and retailers are responding with localised assortment strategies and sharper value positioning.
