In the recently held National Retail Summit – 2010, Retailers reinforced positive stance on the sector. Industry regulators from the Union and state governments said there are several structural changes underway which will be positive for the entire retail industry. We expect retailers to benefit from uptick in spending by urban consumers, faster store expansion.
Meeting with retailers points out that urban demand is undergoing a sharp recovery. All companies expect growth to recover sharply, going forward, owing to better urban consumer spending, strong pipeline of movies in multiplexes.
Cost structure has improved for the entire retail industry due to slowdown in the past few quarters. Rentals, salaries and store renovation costs have come down, which will benefit all retailers.
Companies’ expansion plans are on track as builders and retailers now have better access to liquidity. Also, the slowdown has contributed to consolidating the industry, forcing the lesser players to either shut shops or cut down operations.
Regulations Still a Hurdle – For example, to open one F&B outlet in a mall, one needs 43 licenses from different government bodies, which deters expansion plans. Retailers have requested the Union and state governments to improve the policy for retailers – have a single window clearance, allow hiring of women post 9 pm, relax FII/FDI guidelines etc
Stay tuned for more on How Private Labels, Good Movies aide to good retailing in India 🙂