Retail Sector of India

An Article by Aniket Sur

Synopsis:
The astonishing expansion of supermarkets, , micro markets, and hypermarkets in India is
evidence of the sector's spectacular growth. The present economic slowdown, however, has
cast doubt on this unpredicted growth tendency and made organized retailers in India
fearful of a decline in consumer spending and a slowdown in growth. Retailers who can
foster client loyalty by meeting the demands of the discriminating consumer will succeed at
a time when consumer spending is declining.

Retail Industry of India:

India's retail market was projected to grow from 883 billion dollars in 2020 to 1.7 trillion
dollars in 2026. Although there was a general growth up until 2019, the coronavirus
pandemic in 2020 resulted in a decline. Nevertheless, a market recovery is anticipated for
2022.
In India, consumer spending of groceries accounted for up to 65% of all retail sales. But just
a modest portion of that was sold through online or contemporary merchants. The 2020
coronavirus (COVID-19) pandemic provided internet grocery stores a boost. Online grocers
like Big Basket were able to successfully fill the gap left by commodities that occasionally
weren't available at conventional stores.
India was one of the very few economies to have rising sales volumes in 2020 despite the
epidemic. The nation underwent a transition period in retail forms, which is still progressing,
and is known for its unorganized retail, particularly through local outlets. The retail
landscape of the subcontinent underwent transformation as a result of the introduction of
larger retail locations like malls and supermarkets as well as the expansion of online
commerce. Despite this, local stores remained the dominant force in Indian retail, adopting
digitization and working with bigger competitors as well. Food retail's hegemonic position.

In India, there were more than 22,000 contemporary grocery outlets by 2022. Despite the
fact that this format has been constantly expanding since 2013, it was still a small
percentage of the over 12 million traditional grocery stores in the same year. A substantial
portion of the country's retail market is made up of kiranas, often known as corner shops .

How retail market has changed:

Indian Tier II and III cities are now seeing a retail boom. According to a Knight Frank
estimate, there are 50 such cities in India, and they account for 35% of all the retail space
that is being constructed there. Compared to 35–40% growth in metros and Tier I cities,
organised retail is expanding at a rate of 50–60% annually in smaller towns. Countless shops
are drawn to these cities because of their economic prosperity and limited shopping
options. In order to understand the acceptance of organised retail outlets in smaller cities,
researchers in this study chose two Tier II cities and examined the retail growth and
development in Tier II and Tier III cities.

Conclusion:
India has a wide market and deep penetration, Retail stores are available conveniently
throughout the landscape and digitally, Thus with diversity and volume in demand, Retail
Industry in Indiahas the opportunity to grow exponentially, now more than ever.
 References
1. https://link.springer.com/article/10.1057/rlp.2009.27
2. https://www.statista.com/statistics/1048739/india-number-of-modern-grocery-
retail-stores/
3. https://www.statista.com/statistics/935872/india-retail-market-size