India retail sales growth slows to 5% in May as inflation curbs consumer demand

RAI's May survey shows YoY growth easing from 7% in April to 5%, with QSR (9%) and food & grocery (8%) leading while furniture (2%) and electronics (3%) lag. West India outpaces other regions at 6%; shoppers turn value-conscious amid price pressures.

— Source publishedTue, 23 Jun, 2026, 20:54 IST·First seen Tue, 23 Jun, 2026, 20:58 IST·Source The Hindu BusinessLine

What happened

Retailers Association of India (RAI) · RAI's May business survey shows Indian retail sales grew 5% YoY, down from 7% in April, as inflation tempered demand. QSR

Key facts

  • 5% YoY growth May
  • 7% April
  • West 6%
  • North 5%
  • South 5%
  • East 4%
  • QSR 9%
  • Food & grocery 8%
  • Footwear 6%
  • Apparel 5%
  • Jewellery 5%
  • Beauty 4%
  • Electronics 3%
  • Furniture 2%

Why this matters

Distressed multiples in furniture and electronics retail (2-3% growth) could open tuck-in M&A windows, while West India's outperformance argues for prioritizing regional consolidation plays in that geography.