Christmas is Near: Retail Stocks to Watch This Holiday Season in 2024

The retail market in India experiences a significant boost during the festival season, with consumer spending reaching new heights. Festivals like Diwali, Durga Puja, and Christmas drive substantial demand across various segments, including apparel, electronics, home goods, and luxury items. Retailers often offer attractive discounts, promotions, and festive collections to capture consumer interest, leading to higher footfall in stores and a surge in online sales.

In addition to the increase in retail spending, the festival season also accelerates the growth of e-commerce platforms, as more consumers opt for online shopping due to convenience and exclusive deals. The expansion of digital payment solutions, along with improved delivery networks, further supports the retail growth during this period. As a result, both traditional retailers and e-commerce giants see a substantial rise in sales, contributing to the overall retail market’s expansion.

Retail Sales Growth during the Festival Season

Looking at the previous years, retail sales during the festive season in October and November 2023 showed a modest 7% growth compared to the same period in 2022, as reported by the Retailers Association of India (RAI).

However, when looking at September 2024, retail sales experienced a 5% increase over the previous year. Regional performance varied, with North India leading at 7% growth, followed by West and South India at 5%, and East India seeing growth of 4%.

E-commerce Boom and Category-wise Growth

In 2024, the festive season (Dusshera and Diwali) also saw significant growth in online sales, with a 14% increase in order volumes and an 18% rise in Gross Merchandise Value (GMV) compared to the previous year, according to Unicommerce. Categories such as food and grocery grew the most, at 12%, followed by jewellery at 8%, and consumer durables at 6%. Quick service restaurants (QSR), apparel, footwear, and beauty also experienced notable growth, signalling a robust retail performance as the year progresses towards Christmas and New Year.

Retail Stocks in India to Keep an Eye On

Note: These retail stocks are taken from the Nifty 500 universe and sorted according to their 1-yr returns. The list is as of December 18, 2024.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.