Background of Retail Industry
he Indian retail industry is divided into organised and unorganised sectors. Organised retailing refers totrading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax,etc.
hese include the corporate-backed hypermarkets and retail chains, and also the privately owned largeretail businesses. Unorganised retailing, on the other hand, refers to the traditional formats of low-costretailing, for example, the local
shops, owner manned general stores,
shops, conveniencestores, hand cart and pavement vendors, etc. India¶s retail sector is wearing new clothes and with a three-year compounded annual growth rate of 46.64 %, retail is the fastest growing sector in the Indian economy.
raditional markets are making way for new formats such as departmental stores, hypermarkets, supermarketsand specialty stores. Western-style malls have begun appearing in metros and second-rung cities alike,introducing the Indian consumer to an unparalleled shopping experience.
he Indian retail sector is highlyfragmented with 97 % of its business being run by the unorganized retailers like the traditional family runstores and corner stores.
he organized retail however is at a very nascent stage though attempts are beingmade to increase its proportion to 9-10 % by the year 2010 bringing in a huge opportunity for prospective newplayers.
he sector is the largest source of employment after agriculture, and has deep penetration into ruralIndia generating more than 10 % of India¶s GDP.
Comparative Penetration of Organised Retail
For analysis purpose, we would like to choose
Pantaloon Retail Ltd
as our analysis subject because
theorganization is leading retailer of India.