Bharat Book

Report On Indian Retail Industry

Press Release   •   Oct 17, 2012 14:49 IST



Despite the said challenges, CARE Research expects the growth in country’s PFCE to propel the growth of retailing in India. Correspondingly, CARE Research expects the Indian retail industry to grow at a CAGR of 14.8% during FY12-15. Importantly, CARE Research expects the penetration of organised retail in the total retail pie to increase to 8.8% by FY15 owing to the expanding reach of the retailers in tier- II & III cities accompanied by higher consumer spend on discretionary items. Also, in an attempt to increase margins, CARE Research expects the retailers would resort to measures such as increasing the share of private labels in the total store sales, reducing store-level operating expenses etc.

SECTION- I CARE Research’s OUTLOOK

INDUSTRY OUTLOOK
Rising PFCE – tfuel Indian Retailing growth story
Indian Retail sales tsurge by 1.5 times by FY15
Organised Retail penetration expected at 8.8% by FY15
Organised retailing growth tbe fuelled by spend on discretionary goods
Comparative study of Organised retailing segments
Emphasis on private labels tboost profit margins
Organised retailing in tier-II & III cities texpand further
Capex plans of organised retailers: slow but steady
Focus on reducing store-level operating expenses
Relaxation of FDI norms a welcome move but riders tbe deterrent

CHALLENGES TORGANISED RETAILING
Real estate and property-related issues
Taxation & policy-related hurdles
Inefficiencies in supply chain management
Increased Shrinkages
Scarcity of workforce
Political & local agitation

SECTION- II RETAIL SCENARI- FY11 & FY12

RETAILING TRENDS FY11 & FY12
Improvement in footfalls and Same-store sales post- recession
Operating Profit margin continued tremained affected
Higher interest cost dented the net profit margins
Slower Inventory turnover
Crunch in working capital position
Expansion albeit at a slower pace

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