Retail majors see FY26 demand rise in line with consumer peers

TOP EXECUTIVES AT retail firms such as Reliance Retail, Trent, Shoppers Stop and Vishal Mega Mart have pointed to a better FY26 than FY25, led by the government's fiscal stimulus measures, a good monsoon forecast and growing discretionary incomes.

- VIVEAT SUSAN PINTO

TOP EXECUTIVES AT retail firms such as Reliance Retail, Trent, Shoppers Stop and Vishal Mega Mart have pointed to a better FY26 than FY25, led by the government's fiscal stimulus measures, a good monsoon forecast and growing discretionary incomes. These companies have followed their consumer goods peers such as Hindustan Unilever (HUL), Coca-Cola, PepsiCo and Nestle India, who've said that the virtuous cycle of growth will begin to kick in now as there are no new headwinds to demand in FY26.

While grocery retail performed better than fashion retail in Q4 for companies such as Reliance Retail and Vishal Mega Mart, discretionary categories were expected to gain steam in Q2 of FY26, Kavindra Mishra, MD & CEO, Shoppers Stop said.

Mishra said the demand environment had been challenging in January and February of 2025, notably in value fashion, forcing the company to advance end of season sales and push aggressive offers in beauty to shore up sales growth in the value and masstige segments.