India retail sales grow 10 per cent in August as festive demand builds

MUMBAI: The retail engine is shifting into a higher gear, with India’s retail sales growing 10 per cent year-on-year in August 2026 as the festive shopping season moves closer. According to the Retailers Association of India’s (RAI) Business Survey Round 74, August marked a strong rebound in retail growth after momentum had softened earlier in the year. Growth stood at 7 per cent in April before dropping to 5 per cent in May, then recovering to 6 per cent in June, 8 per cent in July and 10 per cent in August.

The regional picture was equally upbeat. West India led the country with 11 per cent growth, followed by South India at 10 per cent. North India recorded 9 per cent growth, while East India grew 8 per cent.

The numbers point to a retail market regaining its stride just as retailers enter one of their most important periods of the year.

QSRs served up the strongest category growth in August, rising 15 per cent year-on-year. Food and Grocery followed with 12 per cent growth, while Apparel grew 10 per cent and Footwear recorded 8 per cent. Consumer Durables and Electronics posted 7 per cent growth, after reaching a peak in April.

Kumar Rajagopalan, Executive Director and CEO, Retailers Association of India, said the sector had seen an encouraging rebound since July after momentum softened following April. He described August’s performance as a positive lead-in to the festive season, while stressing the importance of execution and inventory planning as seasonal demand builds.

The festive build-up is also extending beyond shop floors. Data cited in the festive advertising context indicates that around 60 per cent of annual advertising expenditure typically takes place between August and December, putting brands and retailers into a particularly competitive battle for consumer attention.

Shoppers, meanwhile, are not necessarily waiting for the traditional festive rush. According to the cited festive-season data, 45 per cent of Indian consumers begin their festive shopping two to three weeks ahead of the peak, while another 37 per cent start a full month earlier.

That early-bird behaviour gives retailers a longer window to convert interest into purchases, making August’s recovery particularly relevant as brands prepare for the months ahead.

With retail growth climbing from 5 per cent in May to 6 per cent in June, 8 per cent in July and finally 10 per cent in August, the sector enters the festive season with momentum back on its side. The bigger test now will be whether that momentum can translate into sustained demand as the country moves into the peak shopping period.