Retail Dude

The India Retail Report 2009 compiled by research group Images F&R Research is again optimistic about Indian Retail Industry. As per the report, spiralling income and rising economic growth (I don’t know where it is) will fuel the growth of industry and it will touch Rs. 18,10,000 crore by 2010. Organized Retail is expected to constitute 13% of it i.e. Rs. 2,30,000 crore. The report says that though people are perceiving that organized retail will hit mom & pop format hard, but modernizing retail will generate employment for 15 million people in different activities.

The report is based on rising economic growth rate of 8-9 per cent and a hike in average salaries by about 15 per cent which may trigger the rate of consumption. But with subprime crisis in US, Indian companies are also affected in big way, and even stock market is suffering. We hear news of cost cutting and layoffs daily. So, I don’t know how far it is right to believe growth rate of 8-9% and hike of 15%.

Food and grocery dominated the retail segment with 59.5 per cent share valued at Rs 7,92,000 crore, followed by clothing and accessories with a 9.9 per cent share at Rs 1,31,300 crore.

-          Rajeev Damani

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