Modern retail industry shrinking
If you think all is hunky dory with the modern retail then there’s a need to do a reality check. Rachit Vats reports.business Updated: Apr 19, 2012 23:34 IST
If you think all is hunky dory with the modern retail then there’s a need to do a reality check.
"The industry is growing after a turmoil and are cautious with expansion plans," said Sanjeev Gaur, head, private label, Reliance Retail.
Supermarket and convenience store statistics from 2004-05 onwards indicate shrinkage in modern retail store numbers as the industry entered a consolidation phase. According to KPMG, the supermarket strength has shrunk from its peak of 4,599 stores in 2008-09 to 2,989 today. The major exodus came in between the period 2008-09, when the sector was at its peak, and to that of 2009-10 when number of stores shrunk 38% owing to closure of Subhikhsa and many other stores. The subsequent year too has remained flat in terms of growth in number of stores before a marginal rise in 2011-12.
“The modern retail roll out plan was mostly executed in the 2006-09 period. Post the roll out most players are consolidating their positions and focusing on how to make money,” said Mohit Bahl, Partner, KPMG Transaction Services.
“Its not an easy business to be in and every retailer in the country is revisiting strategy. In this phase of consolidation retailers are looking at improving supply chain efficiencies, experimenting with formats that work best,” said Sandeep Gupta, managing director, Protiviti.