MUMBAI: The organised retail sector in India – which includes firms from supermarkets to department stores – will grow by 15% this year, down on recent annual expansion of 30% due to declining consumer spending and levels of investment, reports the Retailers Association of India.
The Indian organised retail sector is rapidly growing in size, and has opened up numerous opportunities for brands across a wide variety of sectors.
RAI represents over 400 retailers, and it is estimated that the organised retail sector currently accounts for 5% of the country's total retail market, valued at over $300 billion (€239bn; £213bn).
According to Kumar Rajagopalan, ceo of RAI, the country's retail market is witnessing "weak consumer sentiments" and a "slowdown in fresh investment", while retailers are also "quite cautious" about opening new stores as property prices fall.
He suggested that the government needS to "take measures to boost retail sector growth" and also "initiate efforts to bring back consumer confidence".
However, Arvind K. Singhal, chairman of retail consultancy Technopak Advisors, was more optimistic, and said the organised retail market will grow by “around 25%” in the next fiscal year.
Data sourced from Economic Times; additional content by WARC staff