India's retail sales grow 9% in February
What's the story
India's retail sales grew by a robust 9% year-on-year in February, according to the latest Retail Business Survey by the Retailers Association of India (RAI). The growth comes after a strong festive season performance in November and December. However, RAI has raised concerns over rising costs due to global developments such as the West Asia conflict.
Market stability
Retail growth shows return to stable consumption levels
Kumar Rajagopalan, CEO of RAI, said the retail growth in February shows a return to more stable consumption levels after the festive season. He noted a broad-based performance across regions and continued strength in key categories like apparel and food & grocery. However, he also warned that retailers are starting to feel the pinch of rising input costs due to global developments in energy markets.
Future challenges
Rising input costs due to global energy market developments
Rajagopalan added that the evolving geopolitical situation in the Gulf region adds another layer of uncertainty. Its implications on fuel prices and supply chains could pose future challenges for the sector. He stressed that growth in the coming months will depend on how effectively retailers navigate these cost pressures while catering to an increasingly diverse consumer base.
Demand resilience
Regional performance and consumer demand dynamics
The global geopolitical developments, including tensions affecting key energy supply routes, are expected to influence inflation and logistics costs. However, their immediate impact on consumer demand has been limited so far. In February, retailers in the West and East regions of India reported higher growth at 10% each year-on-year. North and South India followed closely with 9% and 8% growth, respectively.
Category performance
Segment-wise growth trends in February
Apparel and clothing, along with food and grocery, led the growth at 12% and 11%, respectively. The footwear segment also performed well with a 10% growth. Other segments such as furniture and furnishings, jewelry, and quick-service restaurants posted a growth of 9% each. However, consumer durables and sports goods segments lagged behind with a modest growth of 7% each in February.