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Retail demand remained resilient in the first two-and-a-half months of FY27

ICICIdirect Research 23 Jun 2026 DISCLAIMER

News:As per media reports, retail demand remained resilient in the first two-and-a-half months of FY27, with apparel and premium beauty products recording double-digit growth. Apparel sales grew 12-14% YoY during the period, indicating healthy discretionary spending trends. In April 2026, food and grocery sales grew 9% YoY, while apparel, QSR and footwear segments reported growth of 8%/8% and 7% respectively, contributing to an overall 7% YoY increase in retail sales. However, concerns remain around elevated retail inflation and 46% rainfall deficit in June, which could weigh on consumption. Current demand is strong but inflation and monsoon risks remain watchpoints.

View: Stable apparel prices and GST rate cut benefits aided better growth for apparel category in Q1FY27. Rise in crude prices and below normal monsoon is likely to affect the momentum in the coming months. We expect Q2 to be relatively soft as festive season is parked in Q3. So, we expect good comeback in discretionary spends in Q3 and expect it to sustain in subsequent quarter. Overall good momentum in apparel is positive for Trent and Arvind Fashion.

Impact: Positive

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