Indian Retailers Report 8 Percent Sales Growth in September Ahead of Festive Season

Retailers across India recorded an average sales growth of 8 percent in September, reflecting positive consumer demand ahead of the Diwali festivities, according to estimates released by the Retailers Association of India (RAI).

Kumar Rajagopalan, Chief Executive Officer of RAI, noted that the September performance largely reflects pre-festive consumption. He pointed out that last year's festive calendar saw Navratri begin in September, whereas this year celebrations commenced in October with Diwali falling in November. The September figures follow a 10 percent growth rate recorded in overall retail sales during August 2026, which saw growth rates ease slightly across several categories.

In terms of sector-specific performance, the quick-service restaurants (QSR) segment registered the highest year-on-year growth at 11 percent, moving down from 15 percent in August. Food and grocery, along with apparel and clothing, both recorded a growth of 9 percent each. Beauty, wellness and personal care, alongside consumer durables and electronics, registered growth of 7 percent each. Sports goods and jewellery grew by 6 percent, while footwear registered a 5 percent growth rate compared to the same period last year.

Regionally, West India led the sales growth at 10 percent, followed by South India at 9 percent. North India recorded a growth of 7 percent, while East India registered 5 percent. RAI highlighted that all four regions maintained positive year-on-year growth, indicating continued consumer spending across the country.

The industry body added that with the festive shopping period extending further into November this year, retailers will closely monitor consumer spending across both discretionary and essential categories. While September provides a positive starting point, the coming months will offer greater clarity on the overall strength of festive consumption.

"The 8 percent retail sales growth reported in September highlights steady consumer demand heading into the peak festive months. Even with a shift in the festive calendar compared to last year, consistent performance across categories like quick-service restaurants and apparel shows underlying market resilience. Retail businesses will need to maintain a strong focus on customer experience and value as they navigate the extended shopping season through November." — Dr. Shishir Gupta, Founder & CEO, StartupLanes