skewed towards informal employment. “Nearly 97% of direct employees in the retail sector are hired through informal channels and this accounts for nearly 22 million people, while corporatised retail provides direct employment to only 0.7 million people,” says Saloni Nangia, president, Technopak Advisors in a report released earlier this month.
Nangia added in her report that certain structural issues will hamper the growth of organised retail in the decade ahead. “Share of corporatised brick-and-mortar retail in total merchandise retail will at best grow from the current levels of 7% to 17% by 2023... This retail channel will continue to face structural issues encompassing real estate, labour, sourcing and supply chain that will not allow the corporatised brick-and-mortar retail to grow beyond the stated estimate,” the report said.