The Indian Retail Sector

Submitted By :Kavita Lodhwal Ruhee Khan Sandeep Sharma Abhishek Saxena Khoshlendra Anshuman

Introduction Of Retail
 Barter System was known as the first form of retail.  As time passed currency was exchanged with goods and services.

R E T A I - L
 Followed by Kirana Stores .. Mom and Popup Stores

 Size of the Industry By 2011 the organized Retail Sector in India is expected to triple its size. The food and grocery retail sector is expected to multiply five times in the same time frame. The market size of Indian retail industry is about US $312 billion .  Geographical distribution: In all the major Cities of the country.

 Output per annum With growing market demand, the industry is expected to grow at a pace of 25-30% annually.  Percentage in world market Today India is the fifth largest in the world in terms of Retail Industry.  Market Capitalization The present value of the Indian retail market is estimated to be around Rs. 12, 00,000 crore ($312 billion) and the annual growth rate is 5.7%.

 Retailing is one of the pillars of the economy in India. Indian retail sector accounts for 12 per cent of the country's gross domestic product (GDP) and contributes to 8 per cent of the total employment. The retail industry is divided into organized and unorganized sectors. Over 12 million outlets operate in the country and only 4% of them being larger than 500 sq ft (46 m2) in size.

 India is the third-most attractive retail market for global retailers among the 30 largest emerging markets. The total retail sales in India will grow from US$ 395.96 billion in 2011 to US$ 785.12 billion by 2015, according to the BMI India Retail report for the third quarter of 2011.

Retail types
Retail involves the sale of goods from a single point (malls, markets, department stores etc) directly to the consumer in small quantities for his end use. 1. 2. Organized retail Unorganized retail

Retail

Unorganized 95 %

Organized 5%

Retailing refers to a process where the retailer sells the goods directly to the end-user for his own consumption in small quantities. Types of Retail outlets  Department Stores

 Discount Stores  Supermarket  Mom and Pop Store (also called Kirana Store in India)  Speciality Stores  Malls  E Tailers  Hypermarket

Format

No. of stores 4751

Area(000s q ft) 4751

Share in total space(%) 15.5

Supermarkets/convenience stores Hypermarkets Discount stores Speciality Stores Department stores total

75 1772 20612 166 27076

3000 1472 16490 4980 30693

9.8 4.8 53.7 16.2 100

Current Size & Future growth of Organized Retail in India

The Indian Retail Sector, currently the Fifth largest in the world, is poised for phenomen al growth in the coming years

How does retail work ?

 Counter service  Delivery Service  Online Shopping  Order through telephone  Door To Door Sales  Self Service  Second Hand Retail

RETAIL INDUSTRY

Pantaloon Retail:
It is headquartered in Mumbai with 450 stores across the country employing more than 18,000 people.  most retail segments - Food & grocery (Big bazaar, Food bazaar),  Home solutions (Hometown, furniture bazaar, collection-i),  consumer electronics (e-zone), shoes (shoe factory),  Health & Beauty care services (Star, Sitara and Health village in the pipeline),  e-tailing (Futurbazaar.com), entertainment (Bowling co.)

K Raheja Group
They forayed into retail with Shoppers Stop, Indias first departmental store in 2001  Shoppers Stop has 7, 52, 00 sq ft of retail space with a turnover of Rs 6.75 billion.  Crossword brand of book stores,  Homes stop a store for home solutions, Mothercare a concept stocking merchandise related to childcare are also owned by them.  The group has announced plans to establish a network of 55 hypermarkets across India with sales expected to cross the US$100 million mark by 2010

Tata Group
 Established in 1998.Westside, a lifestyle retail chain and Star India Bazaar - a hypermarket with a large assortment of products at the lowest prices.  In 2005, it acquired Landmark, India's largest book and music retailer.  Tata has more than 4 lakh sq. ft. space across the country.  Westside registered a turnover of Rs 3.58 mn in 2006.  Trent plans to open 27 more stores across its retail formats adding 1.5 mn sq ft of space in the next 12 DLF malls.

RPG group
 One of the first entrants into organized food & grocery retail with Food world with dairy product,and cosmetics stores in 1996.

 RPG has Spencers Hyper, Super, Daily and Express formats and Music World stores across the country.  RPG has 6 lakh sq. ft. of retail space and has registered a turnover of Rs 4.5 billion in 2006.  Its opened its bookstores Books and Beyond . An IPO is also in the offering,  with expansion to 450+ MusicWorld, 50+ Spencer's hyper outlets covering 4 million sq. ft. by 2010.

Landmark group
 were launched in 1998 in India. Lifestyle is spread across six cities, covering 4.6 lakh sq. ft. with a turnover of Rs 3.5 billion in 2005.  Their retail mix includes Home solutions (Home centre), fashion (lifestyle, landmark International), value retailing (max retail),  hypermarkets & supermarkets (Max),  kids entertainment (Funcity).

sources
KPMG-FICCI Report AT Kearny www.retailsector.org http://www.indiainbusiness.in

BMI India Retail report

THANK YOU