AC demand surges +20% as broader retail growth cools to ~5% in May

Extended heat drove AC and cooler sales up 20% in volume and 30% in value, per Vijay Sales, even as overall retail growth slowed to ~5% in May from 9-10% earlier amid margin pressure. Chip shortage lifted laptop prices 30-35% and TVs 7-10%, while quick commerce now accounts for ~13% of e-commerce.

— Source publishedWed, 1 Jul, 2026, 11:39 IST·First seen Wed, 1 Jul, 2026, 11:40 IST·Source CNBC-TV18 · Retail

What happened

Vijay Sales · AC and cooler demand surged (+20% volume, +30% value) on extended heat, while overall retail growth cooled to ~5% in May amid margin pressure.

Key facts

  • AC volume +20%, value +30%
  • retail growth ~5% in May vs 9-10% earlier
  • laptop prices +30-35%
  • TV prices +7-10%
  • quick commerce ~13% of e-commerce, 6-7% of FMCG sales

Why this matters

Quick commerce's rise to ~13% of e-commerce and chip-shortage-driven pricing dislocations create partnership and consolidation openings in cooling appliances and last-mile fulfillment.

What to watch

  • Monsoon onset/IMD forecasts signaling end of heat-driven AC demand
  • Chip supply normalization or further laptop/TV price movement
  • Sequential retail growth print vs the ~5% baseline
  • Q-commerce share crossing 15% of e-commerce
  • Gross margin trajectory as promo/financing intensity rises
  • Rebalance inventory toward cooling SKUs but cap seasonal exposure to avoid post-monsoon dead stock
  • Roll out EMI/no-cost financing and exchange offers on laptops/TVs to offset chip-driven price sticker shock
  • Negotiate weather-linked return/markdown clauses with AC OEMs to hedge demand-cliff risk
  • Pilot q-commerce fulfillment for accessories and small electronics to defend online share
  • Segment reporting to separate weather-driven value from underlying comparable growth for cleaner forecasting

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