India retail sales rose 10% in August, with QSR and grocery leading growth

RAI said retail sales growth accelerated to 10% year-on-year in August, up from 8% in July. QSR grew 15% and food and grocery 12%, while West India led regional gains at 11% as retailers prepare for festive-season demand.

— Source publishedWed, 23 Sept, 2026, 19:55 IST·First seen Wed, 23 Sept, 2026, 20:02 IST·Source The Hindu BusinessLine

What happened

Retailers Association of India (RAI) · RAI reported Indian retail sales growth rebounded to 10% year-on-year in August, led by QSR and grocery. West India

Key facts

  • Average retail sales growth: 10% year-on-year in August 2026
  • West India growth: 11%
  • QSR growth: 15%
  • Food & Grocery growth: 12%
  • Same-store retail spend growth: 9.6% in August

What changed

RAI reported Indian retail sales growth rebounded to 10% year-on-year in August, led by QSR and grocery. West India outperformed at 11%, while retailers are focusing on inventory and execution for the festival season amid cautious macro expectations.

Why this matters

India’s retail momentum strengthened into the festive build-up, with QSR and grocery outpacing the market and West India showing the strongest regional demand.

What to watch

  • September and October retail-sales growth, especially whether overall growth remains above 10%.
  • Growth convergence in apparel, consumer durables, jewellery, beauty and home categories versus food, grocery and QSR.
  • Festival-period footfall, same-store sales, online order volumes and average transaction values.
  • Retailer inventory-to-sales ratios, supplier lead times and post-festival markdown guidance.
  • Food inflation, fuel prices, monsoon/rural-income indicators and consumer-confidence readings.