HT Image
HT Image

Growth off the shelf

The retail sector that was till a few years back limited to boutiques and kirana stores, has radically changed its face, writes Radhika Pancholi.Topline courses
By Radhika Pancholi | Hindustan Times
UPDATED ON JUL 24, 2007 06:45 PM IST

In an environment where spending power is growing fast, there is one sector that has caught the eye of investors and customers alike. The retail sector, which was till a few years back limited to standalone stores, boutiques and kirana stores, has radically changed its face. Malls, hypermarkets, supermarkets and lifestyle stores have gained importance — not only in the metros, but also in Tier II and III towns.

The hypermarket format is slated to emerge as a large segment as metro suburbs become swankier hotspots compared to downtown shopping areas. In smaller towns, retail has empowered women to get freedom from the ‘shopkeeper-in law’ with new shopping arcades and malls gaining increasing acceptance among the women of these towns.

On the counter

Retail offers attractive pay packets, but a lot would depend on the company, qualifications, performance level, and experience. Apart from sales, marketing and specialised functions, which go with overall industry trends, a counter clerk can usually start with Rs 1.5 lakh per annum and a store manager at Rs 4 lakh per annum.

With about 11 million square feet of retail space being added last year, the hypermarket and supermarket formats are giving consumers a lot to spend on, especially with existing players such as Pantaloon, Shopper’s Stop and the Tata and RPG groups scaling up fast and new players such as the Birlas and Sunil Mittal pumping in big money into the market.

“At an estimated Rs 12.8 trillion in 2006, India’s retailing sector makes up for almost a third of the country’s GDP. Food and grocery items account for a whopping 74 per cent of total retail sales, comprising the organised and unorganised segments,” states a Crisil Research report.

Strengthening the case for organised food retailing, Sudhir Nair, head of Crisil Research, says: “Farmers are estimated to earn around Rs 1.8 trillion on food grains and fresh grocery at current levels. Assuming this segment shifts entirely to organised retailing, and two-thirds of the savings from reduced supply chain inefficiencies are passed on to the farmer, farm incomes could grow by more than 37 per cent to Rs 2.47 trillion.” It is, however, not yet clear how much would be passed on by the players.

Are you being served?

• India has one retail outlet per 90 people, one of the highest densities in the industry in the world

• India is the 9th largest retail market, with annual sales in the organized segment at Rs 35,000 crore in 2005 — and with revenues doubling every year

• Overall revenues, including those of small shops, is expected to grow 5.5% a year to Rs 28,70,000 crore by 2015 at current prices

• The organized segment is expected to grow faster, at 21.8%, to touch Rs 420,000 crore by 2015

• Food, groceries and general merchandise, apparel, consumer durables, food services and home improvement are the top categories in the organized segment

Source: Tata Strategic Management Group

Even if the rules of the game are evolving, some basics remain as relevant as ever. “The three essentials of retail branding are innovation, innovation and innovation. You have to take care of the customer, be in contact, provide an emotional benefit and respect his or her individual style. In a people-contact business like retail, it’s not about the share of wallets, it’s people,” said Andrew Levermore, CEO of Hypercity Retail India, during the Retail Brand 2007 Summit recently organised by the Confederation of Indian Industry in Mumbai.

The modern retailer is essentially looking out for two things that will help this industry grow — increased manpower and more space for expansion.

This brings us to an important question: who will win the retail race? Will it be the indigenous retailer, with his local knowledge, lobbying power and financial resources? Or will global powerhouses such as Wal-Mart learn to adapt and compete here, armed with their international expertise, western allure and sophisticated supply chains?

Hemant Kalbag, principal (consumer industries and retail practice) at AT Kearney, said while sharing perspectives from the report ‘Growth Opportunities for Global Retailers’: “The answer to these questions will be revealed in the next few years, as there is no single winning formula or ‘silver bullet’ strategy.”

At least till then, this sector will continue to grow at a rapid pace.

SHARE THIS ARTICLE ON
app
Close
In early Tuesday trade, the market capitalisation of BSE-listed companies was at <span class='webrupee'>₹</span>1,91,25,467.48 crore.(REUTERS)
In early Tuesday trade, the market capitalisation of BSE-listed companies was at 1,91,25,467.48 crore.(REUTERS)

India markets closed on Tuesday for holiday

Reuters
PUBLISHED ON JAN 26, 2021 07:33 AM IST
The NSE Nifty 50 index ended 0.93% lower at 14,238.9 on Monday, while the S&P BSE Sensex fell 1.09% to 48,347.59.
Close
US Dollar banknotes are seen in this photo illustration(Reuters File Photo )
US Dollar banknotes are seen in this photo illustration(Reuters File Photo )

Dollar firm as jittery markets look to Fed for catalysts

Reuters, Singapore
PUBLISHED ON JAN 26, 2021 06:56 AM IST
Bets the US dollar keeps falling, to extend a downtrend which began last March, hit an almost decade high last week, positioning data shows.
Close
The LNG Croatia FSRU liquid natural gas (LNG) storage vessel and import facility at the LNG terminal, operated by LNG Croatia LLC, in Krk, Croatia, on Monday, Jan. 25, 2021. The market for vessels carrying liquefied natural gas boomed last year as the world�s biggest trading houses and oil majors booked up ships to take advantage of the�winter demand boom�in fuel demand. Photographer: Petar Santini/Bloomberg(Bloomberg)
The LNG Croatia FSRU liquid natural gas (LNG) storage vessel and import facility at the LNG terminal, operated by LNG Croatia LLC, in Krk, Croatia, on Monday, Jan. 25, 2021. The market for vessels carrying liquefied natural gas boomed last year as the world�s biggest trading houses and oil majors booked up ships to take advantage of the�winter demand boom�in fuel demand. Photographer: Petar Santini/Bloomberg(Bloomberg)

Oil holds gain near $53 as tightening supply offsets virus woes

Bloomberg
PUBLISHED ON JAN 26, 2021 06:35 AM IST
Oil has surged almost 50% since the end of October but the rally has started to falter amid concerns about a sustained recovery in global fuel demand.
Close
Dr K Subba Reddy (HT Photo)
Dr K Subba Reddy (HT Photo)

Budget 2021: Telangana doctor says investments in healthcare must be boosted

By Srinivasa Rao Apparasu, Hindustan Times, Hyderabad
PUBLISHED ON JAN 26, 2021 02:49 AM IST
  • Medical staff in hospitals wore bulky personal protective equipment (PPE) for hours, leaving them dehydrated, exhausted and drenched in sweat.
Close
Construction workers travelling on a winter morning amid heavy fog, in Noida. (Sunil Ghosh / Hindustan Times)
Construction workers travelling on a winter morning amid heavy fog, in Noida. (Sunil Ghosh / Hindustan Times)

Have the labour markets recovered post-lockdown?

By Rosa Abraham , Amit Basole, New Delhi
UPDATED ON JAN 26, 2021 04:48 AM IST
  • Several high-frequency indicators such as the Nomura India Business Resumption Index (NIBRI), Purchasing Managers’ Indices (PMI) show a strong sequential recovery in the economy.
Close
Rule 10 of Legal Metrology (Packaged Commodities) Rules, 2011, provides that e-commerce entities have to display details of the manufacturer.(Reuters)
Rule 10 of Legal Metrology (Packaged Commodities) Rules, 2011, provides that e-commerce entities have to display details of the manufacturer.(Reuters)

CAIT alleges Amazon, Flipkart, Zomato and Swiggy of flouting rules

PTI, New Delhi
PUBLISHED ON JAN 25, 2021 06:19 PM IST
CAIT Secretary General alleged that similar obligations were imposed on e-commerce food business operators.
Close
Amazon has asked the High Court in New Delhi to enforce the decision of a Singapore arbitrator.(Reuters)
Amazon has asked the High Court in New Delhi to enforce the decision of a Singapore arbitrator.(Reuters)

Amazon tries to block Future's asset sale to Reliance after regulatory approval

Reuters, New Delhi
PUBLISHED ON JAN 25, 2021 05:52 PM IST
The Amazon filing also argued that Future should not rely on any regulatory approval it has received, in light of the arbitrator's injunction.
Close
FILE PHOTO: The Apple Inc logo is seen hanging at the entrance to the Apple store on 5th Avenue in Manhattan, New York, U.S., October 16, 2019. REUTERS/Mike Segar/File Photo(REUTERS)
FILE PHOTO: The Apple Inc logo is seen hanging at the entrance to the Apple store on 5th Avenue in Manhattan, New York, U.S., October 16, 2019. REUTERS/Mike Segar/File Photo(REUTERS)

Apple faces Italian suit over iPhones that wear out too quickly

Bloomberg
PUBLISHED ON JAN 25, 2021 04:40 PM IST
The lawsuit mirrors US cases over claims that the company misled consumers about iPhone battery power and software updates that slowed the performance of the devices.
Close
A customer hands Indian currency notes to an attendant at a fuel station in Mumbai, India.(Reuters)
A customer hands Indian currency notes to an attendant at a fuel station in Mumbai, India.(Reuters)

Rupee rises for 5th straight session, settles 3 paise higher at 72.94

PTI
PUBLISHED ON JAN 25, 2021 04:08 PM IST
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, advanced 0.10 per cent to 90.32.
Close
Finance Minister Nirmala Sitharaman will unveil the Budget 2021-22 on February 1.(PTI)
Finance Minister Nirmala Sitharaman will unveil the Budget 2021-22 on February 1.(PTI)

Government may tweak customs duties on host of goods in Budget 2021

PTI, New Delhi
PUBLISHED ON JAN 25, 2021 03:58 PM IST
Sources said that while import duties could be tweaked on over 20 products, the customs duties could be removed on select raw materials.
Close
Sensex settled the session at 48,347, down 531 points(PTI)
Sensex settled the session at 48,347, down 531 points(PTI)

Sensex tanks over 500 points, Nifty ends below 14,250

PTI, Mumbai
UPDATED ON JAN 25, 2021 08:28 PM IST
Over the last three sessions, the BSE Sensex has lost 1,444.53 points or 2.90 per cent and the NSE Nifty has shed 405.80 points or 2.77 per cent.
Close
The Centre had set up a special borrowing window in October 2020 to meet the estimated shortfall of <span class='webrupee'>₹</span>1.10 lakh crore in revenue arising on account of the implementation of the GST.(PTI)
The Centre had set up a special borrowing window in October 2020 to meet the estimated shortfall of 1.10 lakh crore in revenue arising on account of the implementation of the GST.(PTI)

FinMin releases weekly installment of 6,000 cr to meet GST shortfall

PTI, New Delhi
PUBLISHED ON JAN 25, 2021 03:06 PM IST
Till now, 70 per cent of the total estimated GST compensation shortfall has been released to the states and union territories (UTs) with legislative assembly.
Close
The least registration in the ESI scheme for both men and women in the formal sector came in the month of April 2020.(Representational photo)
The least registration in the ESI scheme for both men and women in the formal sector came in the month of April 2020.(Representational photo)

NSO releases employment outlook report

By hindustantimes.com | Written by Deepali Sharma, Hindustan Times, New Delhi
PUBLISHED ON JAN 25, 2021 02:54 PM IST
In all the three schemes, the number of new registrations increased after June 2020.
Close
Gold is considered a hedge against inflation, likely from widespread stimulus. (HT Photo) (Representative Image)
Gold is considered a hedge against inflation, likely from widespread stimulus. (HT Photo) (Representative Image)

Gold eases on doubts over US stimulus passage

Reuters
PUBLISHED ON JAN 25, 2021 02:50 PM IST
Spot gold fell 0.1% to $1,850.91 per ounce by 0822 GMT, having dropped 0.9% in the previous session. US gold futures fell 0.2% to $1,851.80.
Close
A government agricultural officer collects urine samples from pigs arriving at a slaughterhouse in Wuyi county, Zhejiang province, China.(REUTERS)
A government agricultural officer collects urine samples from pigs arriving at a slaughterhouse in Wuyi county, Zhejiang province, China.(REUTERS)

China's pigs become unexpected threat to palm oil's rally

Bloomberg
PUBLISHED ON JAN 25, 2021 02:16 PM IST
The world’s biggest pork producer and consumer is scooping up unprecedented quantities of soybeans and corn on world markets to feed domestic hog herds.
Close
SHARE
Story Saved
OPEN APP