RAI’s latest survey shows a broad-based July recovery, but furniture, sports goods and other discretionary categories continue to trail everyday consumption-led retail
India’s retail industry is entering the festive season on a stronger footing, with sector-wide growth accelerating to 8 per cent year-on-year in July 2026, the latest Business Survey Round 73 by the Retailers Association of India (RAI) showed.
The July performance marks a notable improvement after a softer first quarter and coincides with a recovery in actual store-level demand. RAI’s SANKET report, developed with Innoviti, recorded 7.1 per cent store-level growth in July, the strongest reading since the beginning of the quarter.
The recovery was strongest across the North and South, where retail growth reached 9 per cent in July. The East and West recorded 6 per cent growth each. RAI said the regional performance was consistent with SANKET’s findings, which showed the South maintaining its resilience during the quarter and the West staging a strong rebound after a sharper decline in Q1.
Everyday consumption categories remained the primary growth engines. Quick-service restaurants grew 13 per cent, while food and grocery recorded 12 per cent growth. Footwear followed with 10 per cent, and apparel grew 8 per cent.
The picture was more subdued in categories involving larger or more considered purchases. Consumer durables and electronics registered 7 per cent growth, jewellery 6 per cent and sports goods 4 per cent. Furniture recorded only 1 per cent growth, making it the slowest-growing category in the survey.
The divergence highlights the key challenge for the festive season. Although consumers are spending more on routine purchases, demand for big-ticket products — traditionally an important component of festive shopping — has yet to match the pace of everyday categories.
RAI said retailers nevertheless have a firmer starting point than they did in April and May. The association expects retailers to enter the festive season with greater optimism as they prepare inventory, staffing and promotional campaigns to capture an anticipated improvement in consumer demand.
According to Kumar Rajagopalan, Executive Director and Chief Executive Officer, RAI, the July data confirmed both sustained topline growth and a return of store-level demand after a period of weakness during the summer.
The recovery could prove particularly significant as the festive period traditionally encourages consumers to make larger purchases that they may defer during the rest of the year. For retailers, the immediate priority will therefore be ensuring adequate inventory, operational readiness and appropriately timed offers.
The July figures provide a positive lead-in to the festive season, although the performance of discretionary categories will remain a key indicator of whether improving retail momentum develops into a broader consumer spending recovery.
