Indian retail demand varies. The sales increase primarily when there are festive seasons, observes Kumar Rajagopalan, CEO of Retailers Association of India (RAI). There was some increase in January and February 2025, sure, but retailing is never easy when it is not a peak shopping time.

RAI figures show retail sales increased by 5% in January, and February will also be the same. "We don't have February's figures yet, but from what we have and what we've heard, it seems there won't be much change," Rajagopalan said. The increase is moderate in comparison to last year, reflecting cautious expenditure by middle-class and poor families.

Retail demand has performed better in key festive months like October, November, and December, with sales rising by 8%. This was due to rising numbers of people looking to buy clothes, footwear, and jewelry. But in the off-season, retail demand has not actually picked up, which means sustainable growth is still a problem.

Food and luxury goods sales have remained relatively strong, but consumers have spent very little on discretionary items. Shoppers are being closely monitored by retailers as they prepare ways to propel sales throughout the year, rather than waiting for holiday buying.

The retail sector is looking to emphasize special offers, improving in-store shopping experiences, and online sales gains to drive long-term sales. But unless the economy as a whole picks up, stores can still experience low levels of spending during the slower periods.