Indian retail sector shows growth of 5% in December 2024, 55th Retail Business survey
INDIA – The Indian retail sector has witnessed a sales growth of 5 per cent in December 2024 compared to the same festive time period in 2023.
According to the Retailers Association of India’s (RAI) 55th Retail Business Survey released on 27th Jan, South India experienced the highest sales growth at 6%.
The sales growth in East India showed a growth of only 4% while West and North India each recorded a 5% increase.
In terms of categories, quick-service restaurants (QSR) registered the highest growth of 10%, followed by apparel.
Food and grocery and sports goods each showed a growth of 7% compared to the December 2023 period. The growth in QSR category reflects consumers’ prioritization of food habits.
Kumar Rajagopalan, CEO Retailers Association of India (RAI), said, “RAI’s survey shows 5 per cent growth in December. Inflation and other payment obligations for EMI etc. are continuing to weigh on discretionary spending. The wedding season provided some boost to categories like apparel and jewellery, but overall consumption remains subdued.
“Notably, QSR is showing early signs of recovery, offering a glimmer of optimism for the sector. With the Union Budget around the corner, the retail industry hopes for measures that address inflation and boost consumer confidence.”
In other news, Reliance Consumer Products Ltd (RCPL), the consumer goods arm of Reliance Industries Ltd (RIL), announced its acquisition of packed food brands SIL, a food brand known for sauces and condiments.
While the financial details are not disclosed, the acquisition is part of RCPL’s aggressive push into India’s consumer goods market.
Since its launch, the company has expanded rapidly, acquiring homegrown brands to strengthen its portfolio.
SIL’s product offerings, plans to leverage RCPL pan-India presence, extensive distribution network, and marketing expertise.
Reliance Consumer Products Ltd reported that it aims to reach the ₹10,000 crore (US$115.73m) revenue mark, and acquisitions were part of its strategy to reach that level.
This deal is part of RCPL’s broader acquisition strategy, which in recent years has included Ravalgaon and Toffeeman confectioneries, Campa soft drinks, Raskik beverages, Sosyo carbonated drinks, and Lotus chocolates.
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