Quick Service Restaurants (QSR) led the growth chart with 9 per cent growth, followed by food and grocery at 8 per cent
Amid mounting inflationary pressures, retail sales growth across the country eased to 5 per cent in May 2026, down from 7 per cent in April 2026. Data by the Retailers Association of India (RAI) showed that essential categories continued to drive retail demand.
The round 71 of RAI’s monthly business survey showed that west India led retail growth at 6 per cent, followed by north and south India at 5 per cent each. East India reported a relatively subdued growth of 4 per cent, reflecting a more measured pace of consumer demand.
“Growth eased to 5 per cent in May, down from 7 per cent in April, as inflationary pressures from global conflict weighed on consumer sentiment. Retailers are watching the situation closely as spending turns more cautious,” stated Kumar Rajagopalan, Chief Executive Officer (CEO), RAI.
Among categories, Quick Service Restaurants (QSR) led the growth chart with 9 per cent growth, followed by food and grocery at 8 per cent. Footwear recorded growth of 6 per cent, while apparel and clothing, jewellery and sports goods each grew by 5 per cent.
Retailers continue to witness measured consumer spending patterns, with value-conscious purchasing behaviour influencing demand across categories. RAI added that businesses are maintaining a strong focus on inventory optimisation, customer engagement and operational efficiencies.
At the same time, businesses are increasingly leveraging AI-driven analytics and digital technologies to enhance decision-making, improve customer experiences and sustain growth and profitability, the official statement.
