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Though the global financial crisis has been unnerving the sectors such as real estate, banking and IT, Indian retail sector has remained relatively unscathed. Riding high on the increasing disposable incomes, increasing number of dual income nuclear families and changing lifestyles and consumer behaviors, Indian retail sector has witnessed a phenomenal growth rate over the past few years. Interestingly, India remained as the most attractive retail market for the third year in a row in an index prepared by AT Kearney. A recent study states that retailing is the largest contributing sector to the country's GDP. Akin to the US retail sector, it contributes around 10% to India's GDP. However, the figure is more when compared to 8% of China's and 6% of Brazil's GDP.
Though the domestic deterrents such as high inflation, mounting interest rates and rising rentals have slowed the growth pace for a short while, by adopting innovative strategies, retailers could tide over the situation. The sector has evolved from the initial phase of 1995 to the growth stage of 2008 and is expected to grow 10% year on year. The retail growth story in India has not only prodded Indian players to take on their businesses to new orbit but also lured many major foreign players. Given the huge untapped potential, the $350 bn Indian retail sector still has enough headroom to grow over the long-term. According to The Analyst 500 ranking of 2008, based on net sales, Pantaloons Retail India Ltd. topped the league chart with a whopping 78.13 % increase in net sales vis-a vis the previous year. Shoppers' Stop took the second place with 32.66 % increase in net sales. |
