The modern retail market in India is expected to grow from $13.51 billion to $26.67 billion in 2019, according to an IBEF report. India’s modern retail is expected to double in size in the next three years
Stating that the current slowdown is a short-term phenomenon, retail industry players on Tuesday said they are optimistic about the future growth prospects in the sector. Speaking at the Retail CFO Summit, 2019 organised Retailers Association of India (RAI), the industry officials said given the sheer size of the Indian population, consumption and demand will drive organised retail.
Reliance Retail chief operations controller Ashwin Khasgiwala said: “A huge amount of capital is coming into retail, and there is a high level of optimism related to organised retail in India. Consumption will not go down and as a result of that there is plenty of opportunity for companies, which are giving quality at the right price.”
Arvind Fashions CFO Pramod Gupta said: “There is a slowdown in the economy, but when a slowdown happens, people do not stop eating, drinking and wearing clothes. Within it there are some discretionary items and impulsive sales which get delayed.”
Stating that it was an “exciting time” for the retail industry, V-Mart Retail CFO Anand Agrawal also said: “Retailers invest with long-term view, if you look at the size of the country, there is still a lot of areas and markets which is yet to see organised retail. The key is how responsive the companies are to the demands of customers and market.”
However, retailers did acknowledge that discretionary spends are sluggish, while the ticket size of purchases made by customers has reduced.
Raymond Group CFO Bibek Agrawal said: “Ticket size is reducing but the average repetition is increasing because of the agile supply chain, and proper replenishment of stock, people are looking for frequent transactions.” The modern retail market in India is expected to grow from $13.51 billion to $26.67 billion in 2019, according to an IBEF report. India’s modern retail is expected to double in size in the next three years.