The retail industry is hoping for stronger growth in 2025, driven by more sustained consumption trends. According to the latest survey released by the Retailers Association of India (RAI) for the October-December period, the retail industry witnessed a growth of 7 per cent largely enabled by the festival season consumption. The industry is hopeful of achieving a double-digit growth trajectory.

Kumar Rajagopalan, CEO, Retailers Association of India (RAI) told businessline, “The growth for the industry in the October-December period was moderate but it was less than the anticipated double-digit growth rates. The consumers did come out to shop during the festival season. But whether there has been a consumption recovery at the bottom of the pyramid is still a question mark. Limited spending by the lower middle-class section remains one of the key concerns.”

He added that the industry hopes  to see more sustained consumption trends in this year. “Post-festival, the demand trends tapered down very fast. The worry is whether one will see normalised consumption trends during the non-festival period,” Rajagopalan said.

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He pointed out that consumption growth in the retail industry has been largely subdued throughout 2024. This prompted retailers to boost business through promotional offers and encouraging festive purchases.

RAI’s latest survey revealed that West India experienced the highest sales growth at 8 per cent during the October-December period over the year-ago period. Retailers in North, South, and East India each recorded a 7 per cent increase during this quarter. In terms of categories, food and grocery registered the highest growth of 14 per cent, followed by 10 per cent in QSR and 9 per cent in jewellery compared to the same festival period last year.

Rajagopalan  said that the retail industry hopes  to see stronger growth in 2025. “ The fundamentals of the economy remain strong and we hope the industry gets to double-digit growth trajectory. Inflation,  remains one of the key concerns.Rising operational costs require a sustained growth trajectory to maintain profitability for retailers,” he added.