RAI Retail Business Survey – Round 71.

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Mumbai, Maharashtra, 23rd of June 2026 : RAI BUSINESS SURVEY RECORDS 5% YEAR-ON-YEAR GROWTH IN MAY 2026; ESSENTIAL CATEGORIES AND QSR SEGMENT CONTINUE TO DRIVE RETAIL DEMAND

Retail sales in India grew 5% year-on-year in May 2026, according to Round 71 of the Retailers Association of India’s (RAI) monthly Business Survey.

Across regions, West India led retail growth at 6%, followed by North and South India at 5% each. East India reported a relatively subdued growth of 4%, reflecting a more measured pace of consumer demand.

Among categories, Quick Service Restaurants (QSR) led the growth chart with 9% growth, followed by Food & Grocery at 8%. Footwear recorded growth of 6%, while Apparel & Clothing Jewellery, and Sports Goods each grew by 5%.

Retailers continue to witness measured consumer spending patterns, with value-conscious purchasing behaviour influencing demand across categories. Businesses are maintaining a strong focus on inventory optimisation, customer engagement, and operational efficiencies, while increasingly leveraging Al-driven analytics and digital technologies to enhance decision-making, improve customer experiences, and sustain growth and profitability.

Kumar Rajagopalan, CEO, RAI:

“Growth eased to 5% in May, down from 7% in April, as inflationary pressures from global conflict weighed on consumer sentiment. Retailers are watching the situation closely as spending turns more cautious.”

About RAI:

The Retailers Association of India is the national body representing India’s retail industry across all channels and formats, from large format and specialty retail to e-commerce, quick commerce, and connected commerce businesses. RAI works with governments, regulators, and industry stakeholders to enable a competitive, innovation-friendly retail ecosystem. Through policy advocacy, industry events, research, and learning programmes, RAI builds the conditions for retail to grow, invest, and create employment at scale. India’s retail future is connected. RAI is building for it.