India’s retail sector recorded a 5% year-on-year increase in sales during May 2026, reflecting a moderation in consumer spending amid inflationary pressures and global economic uncertainties, according to Round 71 of the Retailers Association of India’s (RAI) monthly Business Survey.
The survey showed that retail growth eased from 7% in April to 5% in May, indicating a more cautious spending environment across the country.
Regionally, West India emerged as the strongest-performing market, registering retail sales growth of 6%. North India and South India each recorded growth of 5%, while East India posted a comparatively lower growth rate of 4%, suggesting a more measured pace of consumer demand in the region.
Among key retail segments, Apparel & Clothing reported a 5% increase in sales, while the Footwear category outperformed with growth of 6% during the month.
The survey indicated that consumers continue to display value-conscious purchasing behaviour, prompting retailers to focus on inventory optimisation, customer engagement and operational efficiency initiatives. Businesses are also increasingly adopting artificial intelligence-driven analytics and digital technologies to strengthen decision-making processes, improve customer experiences and support long-term growth and profitability.
Commenting on the latest trends, Kumar Rajagopalan, Chief Executive Officer of the Retailers Association of India, stated that retail growth had moderated to 5% in May from 7% in April, as inflationary pressures linked to global conflicts weighed on consumer sentiment. He noted that retailers were closely monitoring market conditions as consumers adopted a more cautious approach to spending.
