India’s retail sales rise 6 per cent in June as value shopping prevails

MUMBAI: India’s shoppers are still opening their wallets but they’re reading the price tag first. Retail sales in the country grew 6 per cent year-on-year in June 2026, signalling resilient consumer demand even as households remained selective about where and how they spent, according to the latest Business Survey by the Retailers Association of India (RAI).

The survey found that consumers continued to favour value-driven purchases, with essential goods and experience-led spending driving growth. In response, retailers are sharpening inventory management, embracing technology-led decision-making and expanding omnichannel operations as they prepare for the all-important festive season.

Regionally, West India emerged as the strongest-performing market with 8 per cent growth, followed by North India at 7 per cent. Retail sales in both East and South India rose 6 per cent, indicating healthy demand across the country.

Among retail categories, Food & Grocery topped the growth chart with a 10 per cent year-on-year increase, highlighting the resilience of essential spending. Quick Service Restaurants (QSRs) followed with 9 per cent growth, while Footwear sales advanced 8 per cent.

Consumer Durables & Electronics recorded 7 per cent growth, while both Jewellery and Apparel & Clothing posted 6 per cent gains, reflecting steady demand across discretionary spending categories despite consumers remaining cost-conscious.

The survey noted that retailers are increasingly relying on promotional campaigns, value-focused offerings and digital transformation initiatives to attract shoppers whose purchasing decisions are becoming more deliberate. Businesses are also investing in stronger omnichannel capabilities to improve customer engagement and operational efficiency.

Commenting on the findings, Kumar Rajagopalan, Chief Executive Officer of the Retailers Association of India, said the retail sector continues to navigate a cautious but stable demand environment.

“The June 2026 survey highlights a cautious retail landscape. While the intent to spend remains intact among Indian consumers, they are highly value-conscious, prompting retailers to pivot strategies quickly to sustain growth. Retailers are adapting with sharp value and efficiency and preparing for the upcoming festive season,” he said.

The June survey suggests that India’s retail recovery remains firmly on track, but the rules of the game are changing. Consumers are spending, though with greater scrutiny, while retailers are increasingly competing on value, convenience and digital experiences rather than discounts alone as they head into the festive shopping season.