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Indian retail may triple in size

Indian retail may triple in sizeThe Indian retail market is expected to triple in size by fiscal ’25. Food and grocery and the apparel segments are likely to witness a compound annual growth rate of 27 per cent and 22 per cent.

While stores in India may have suffered at the hands of e-commerce, they Indian retail may tripleare likely to stay as a formidable force. Retailers have witnessed an expansion in their footprint, revenue and overall growth. In fact the strong demand in the food and grocery and apparel categories may require 4000 new retail stores over the next eight years offering a huge runway of 15 per cent CAGR in retail footprint.

Big startups such as Paytm have partnered with retail chains such as Croma, Reliance Digital to provide customers with a tactile experience. Paytm has experienced customers in India prefer to touch and feel the product before making a purchase. To ensure this, it has partnered with large format retail stores.

However, retailers are likely to employ a few measures as well in a bid to cut operational costs. Stores are looking to make their businesses more profitable with leaner store layouts, cluster-based growth, focus on private labels and membership-based models in the future.

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