QSR and Food & Grocery segments lead growth while retailers remain focused on efficiency and technology adoption
India’s retail sector recorded a 5% year-on-year increase in sales during May 2026, according to Round 71 of the Retailers Association of India’s (RAI) monthly Business Survey.
The survey indicated that demand remained strongest in essential consumption categories, with Quick Service Restaurants (QSR) and Food & Grocery continuing to support overall retail performance.
Regional Performance
Among the regions surveyed, West India reported the highest retail growth at 6% compared to the same period last year. North India and South India each registered growth of 5%, while East India recorded a comparatively moderate increase of 4%.
The findings suggest varying levels of consumer demand across regions, with western markets showing relatively stronger momentum during the month.
Category-Wise Growth
The QSR segment emerged as the fastest-growing category, registering a 9% year-on-year increase in sales.
Food & Grocery followed with growth of 8%, while Footwear recorded a 6% increase. Apparel & Clothing, Jewellery, and Sports Goods categories each reported growth of 5%.
The survey highlights the continued importance of essential and value-driven purchases in shaping consumer spending patterns.
Retailers Focus on Efficiency and Technology
According to the survey, retailers are witnessing measured spending behaviour from consumers, with value-conscious purchasing decisions influencing demand across multiple categories.
Businesses are maintaining a focus on inventory optimisation, customer engagement and operational efficiency. Many retailers are also increasing the use of AI-driven analytics and digital technologies to support decision-making, improve customer experiences and enhance profitability.
Industry Perspective
Commenting on the survey findings, Kumar Rajagopalan, CEO, RAI, said:
“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.”
The latest survey indicates that while retail demand remains positive, businesses continue to monitor economic conditions and changing consumer behaviour as they navigate the evolving market environment.
