New Delhi: Online festive sales have fallen short of already curtailed expectations, marking the slowest festive growth in the last five years, the Financial Express has reported.Gross merchandise value (GMV) grew by just 13–15% year-on-year, falling short of industry expectations of 20–25%. This marks the slowest festive sales growth in at least five years.The report quotes industry analysts and executives who say on record that the biggest setback this festive season came from smartphones, laptops and large appliances. Discounting in these was 35-40% lower than last year, as brands had little room to cut prices amid rising input costs, the report quotes analysts as having said.The report adds that things were better last year, when festive GMV had grown 25% over the 2024 season to Rs 1.2 lakh crore, helped by GST rate cuts that took effect a day before the sales opened in September 2025. The growth was 16% in 2023, and 19% in 2024.Interestingly, the report notes that a lot of this year’s growth came from higher order volumes and not purchases of higher-value products. Shoppers bought items in lower-priced categories like home decor, fashion, footwear, beauty and personal care, and grocery.Grocery, according to data cited by FE, saw the fastest growth, at about 40% over last year’s festive period.Higher fuel prices and increasing product returns have added to delivery and operational costs, the report finds.Analysts expect brands to raise prices after Diwali, potentially in December or January, as companies are likely to pass on previously absorbed cost increases, the experts cited in the report say.