Festive retail momentum builds as malls eye Dhanteras-Diwali sales surge

India’s organised retail sector is witnessing a healthy festive-season revival, with shopping malls reporting stronger sales across fashion, ethnic wear, jewellery, electronics, beauty and home categories.

Despite differences in the festive calendar and a more value-conscious consumer, retailers and mall operators say demand remains encouraging, with the upcoming Dhanteras and Diwali period expected to determine the season’s final performance.

Why year-on-year comparison can be misleading

According to the Retailers Association of India (RAI), retail sales grew 8% year-on-year in September, indicating a healthy underlying consumption trend ahead of the main festive period. This year’s Navratri began in October, compared with September last year, while Diwali falls on November 8, further complicating direct year-on-year comparisons.

Shriram Monga, Co-Founder and Principal Consultant at SRED Global, a specialised real estate advisory and leasing consultancy firm, said comparing the two festive seasons on a month-on-month basis would not provide an accurate picture of demand.

Also read: Gold, silver prices crash ahead of Diwali: Why precious metals are falling

“Last year’s numbers also had a lift from the GST rate cuts, so this year’s growth looks more organic and broad-based,” Monga said. He added that brands were continuing to commit to retail locations rather than pulling back, with the next 10 days around Dhanteras and Diwali likely to determine the final sales performance.

Mall business encouraging

At the mall level, operators are reporting encouraging numbers. Sarthak Gaur, Director, Gaurs Group, said Gaur City Mall recorded more than 20% year-on-year sales growth during Navratri, with ethnic wear, electronics, home and jewellery emerging as strong-performing categories.

The mall’s jewellery portfolio, comprising more than 15 leading gold and diamond brands, including Tanishq, Kalyan, ORRA and Bluestone, has strengthened its positioning as a festive jewellery destination in the NCR, Gaur said. Electronics anchors Croma and Reliance Digital recorded growth of more than 50%, reflecting robust demand for high-value purchases.

Ambience Group Director Arjun Gehlot also reported better festive-season sales compared with last year, attributing the improvement to economic growth and positive consumer sentiment. He said shoppers were purchasing across categories such as fashion, beauty, jewellery and home décor, indicating that festive consumption was not restricted to a handful of traditional segments.

Food, beverage and experiences

The changing consumption pattern is also reflected in the growing importance of food and beverage within shopping centres. According to Monga, food courts, quick-service restaurants and cafés are witnessing particularly strong activity, as families increasingly combine festive shopping with dining and entertainment. Apparel, ethnic wear, footwear, beauty and appliances are also performing well.

Also read: Festive demand stays strong, but buyers turn cautious on big-ticket purchases

Mall operators are consequently investing in experiences beyond conventional retail. Gaur said Gaur City Mall had organised immersive festive installations and a large-scale community Dandiya celebration, besides bringing Shriram Bharatiya Kala Kendra’s iconic dance drama, Shri Ram, to the Noida region for the first time. Shopping rewards and prizes, including diamond jewellery worth Rs 1.5 lakh and an iPhone 17 Pro, are also part of its festive engagement programme.

Consumer sentiment remains positive, although purchasing decisions are becoming more considered. Monga said shoppers were comparing prices and prioritising value and experiences over impulse purchases. Payment preferences largely depend on transaction size, with no-cost equated monthly instalments (EMIs) gaining traction for smartphones, laptops and appliances, while UPI and cards remain common for fashion, dining and gifting.

Gehlot echoed the view that the choice between EMI and direct payment depends on the nature and value of the purchase, suggesting that flexible payment options are becoming an important part of the retail ecosystem.

Retail market expansion continues

Meanwhile, India’s retail market continues to attract international brands across fashion, beauty and accessories. Gehlot said global retailers were showing sustained interest in the country, even as Indian designers gained greater prominence by catering to consumer demand for distinctive designs, craftsmanship and premium shopping experiences.

Also read: Imports drive 23 pc GST surge in Oct as domestic revenue engines lag

Monga identified activewear, premium fashion, and food as important areas of international expansion. He pointed to recent global brand activity, including Off-White, Fabletics and Lululemon at DLF Promenade in Delhi, alongside expansion plans by international food-service operators. IKEA’s ambition to build a 30-store presence in India by 2030 also underlines the market’s long-term potential.

Space remains a challenge

However, the availability of quality retail space remains a challenge. With limited new Grade A mall supply and competition for established shopping destinations, brands are increasingly looking to secure prime mall and high-street locations. Monga said retailers that decide early on their target cities and formats are better positioned to secure the right addresses, adding that food and beverage-led formats often lead leasing activity.

For mall operators, the festive season is increasingly about combining strong retail offerings with dining, entertainment and community engagement. With consumers continuing to spend across categories and international retailers looking to deepen their Indian presence, the coming weeks will be crucial in establishing whether the current momentum translates into sustained growth for organised retail.