Retail sector maintains steady growth amidst cautious consumption
23 May 2026, Mumbai
The Indian retail landscape demonstrated sustained momentum in April 2026, recording a 7 per cent Y-o-Y growth according to the latest Business Survey by the Retailers Association of India (RAI). Despite global economic volatility and rising operational expenditures, the apparel and footwear segments have proven particularly resilient. Apparel retailers observed an 8 per cent growth rate, while footwear followed closely at 7 per cent, indicating that consumers continue to prioritize fashion despite a broader environment of fiscal prudence. This demand is currently bolstered by localized growth, with Western India leading the national performance with a 9% surge, followed by Southern India at 8 per cent.
Operational discipline as a strategic imperative
Retailers are increasingly pivoting toward heightened operational efficiency to preserve profit margins against the backdrop of cautious discretionary spending. Industry leaders are focusing on granular inventory management and value-oriented product offerings to align with evolving buyer behavior. Kumar Rajagopalan, Chief Executive Officer, RAI, noted, while the 7 per cent growth is moderate, it reflects a market that has navigated global cost pressures more effectively than many of its peers. A case study in this trend is the recent shift among mid-tier fashion chains, which have successfully implemented lean supply chain models to reduce excess stock while maintaining price competitiveness, ensuring that consumer intent is translated into actual sales despite a measured approach to spending.
Facilitating growth across all formats
The Retailers Association of India (RAI) is the national apex body representing the interests of India's diverse retail industry. It facilitates growth across all formats, from large-format stores to e-commerce and quick-commerce. RAI acts as a bridge between retailers, government, and industry stakeholders to build a competitive, sustainable, and innovation-driven ecosystem.
Get in Touch! 
