The retailing industry in India is going through a major transformation. Organized retailing is emerging in a big way and super market chains are spreading very fast.

The retailing industry has grown at a rapid pace in the last decade. During the last decade, retail firms have created a market value of more than $800 bn. Also the market share of organized retailing has grown significantly worldwide. The highest being in USA, which has 85% of organized retailing and Taiwan being the second with 81%.

The organized retail industry in India is worth Rs.16,000 cr, which is around 2% of the total retail industry. India's retail network is the largest with more than 13 million outlets; the second being Mexico with only 1.8 million outlets. Retailing in India is highly fragmented. It mostly comprises of mom and pop stores, which have fixed prices, no usage of technology and little or no ambience. The outlets are mostly operated from unregistered Kiosks or traditional property, which use cheap labor. The per capita outlet is the highest in the world with 5.5 outlets per thousand people and per capita retail space is the lowest with 2 sq. ft. per person.

The retailing industry is undergoing transformation with assertive consumers looking for better value, service and products. At present, organized retailing is emerging in a big way, which can be seen by the recent spread of super market chains across the cities. It is estimated that by 2005-06, organized retailing would constitute 20% of the total retailing industry in India.

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