In India, modern retail is just 22 years old (with the exception of Bata), beginning with the first Shoppers Stop outlet in Andheri, Mumbai, which sold only menswear. Shoppers Stop is today a chain of 61 stores spread across 27 cities, with an expected annual turnover of Rs 3,000 crore in the current fiscal.
How is the modern retail sector performing in India? How are retailers in India performing vis-à-vis each other? What is the trading performance of modern retail formats prevalent in the country today?
For an industry expecting to touch revenues of US$50 billion within the next two years, it is imperative to understand both – the market and the performance of the retailers – and to know and analyze the average trading densities (ATD) of various modern retail formats across the country.
The data for the study was collected by Asipac researchers through direct contact with executives of more than 150 retailers currently active in India throughout the first seven months of 2013. The data pertains to malls in about 30 cities. Asipac senior management verified the data by cross-checking almost 30 percent of the figures and we are reasonably satisfied with the accuracy and reliability of the figures presented. In any extensive study of this nature, there are bound to be errors and omissions.
The trading density in India’s modern retail sector has grown at an average of about 6.2 percent p.a. over the last four years. This is not difficult to believe, considering that the post-Lehman period (2009-2010) saw an overall growth rate of less than 3 percent, thus bringing down the four year average to just 6.2 percent. Prior to 2009, the average trading density of retailers in Indian malls was growing at a healthier 8-9 percent p.a.
View PDF >