Retailers recorded 5% growth in May amidst inflationary pressures

Retailers in the country recorded a 5 per cent year-on-year sales growth in May and was sequentially lower than April due to inflationary pressures, as per the monthly business survey released by Retailers Association of India (RAI). This growth was led by essentials and Quick Service Restaurants (QSR) segments. The industry body noted that the consumers remained cautious and value-conscious during the month.

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

Kumar Rajagopalan, CEO, RAI, said, “Growth eased to 5 per cent in May, down from 7 per cent in April, as inflationary pressures from global conflicts weighed on consumer sentiment. Retailers are watching the situation closely as spending turns more cautious.”

The industry body said that retailers are witnessing ‘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 AI-driven analytics and digital technologies to enhance decision-making, improve customer experiences and sustain growth and profitability,” the association said.

In terms of categories, QSR led the growth chart with a 9 per cent year-on-year growth in the month of May, followed by food and grocery at 8 per cent. Footwear recorded growth of 6 per cent, while apparel and clothing, jewellery and sports goods each grew by 5 per cent. Beauty and wellness segment grew by 4 per cent while consumer durables and electronics sales grew by about 3 per cent year-on-year. At the same time, furniture and furnishings segment growth was a mere 2 per cent, the RAI’s report revealed.