OVERVIEW
India is the fifth largest retail market globally, with a size of INR 16trn, and has been growing at 15% per annum. Organized retail accounts for just 5% of total retail sales and has been growing at 35% CAGR. Though the journey has so far been rather mixed, organized retail is being tipped as one of the biggest gainers from growing consumerism and rising income. India’s robust macro and microeconomic fundamentals, such as robust GDP growth, higher incomes, increasing personal consumption, favourable demographics and supportive government policies, will accelerate the growth of the retail sector.

1) Learning from the Past: During2005-2007, the sector was in a hyper growth phase. In pursuit to capture market, companies made strategic as well as operational errors which has been broadly classified as follows: I .Race for increasing retail space resulting in haphazard growth ii. Unviable formats iii. High lease rentals iv. Manpower costs and productivity issues
v. Poor back end infra structure vi. Entry of too many new players

2) Consolidation:Duringtheglobalslowdownphaseof2007-2009,theIndianretailplayerspausedtorealizetheirpastmistakesandtooktimeandefforttore-organizethemselves:i.Focusonprofitablegrowth * Exit from unprofitable stores/formats * Rental renegotiation/revenue sharing arrangements * Reduction in salaries/higher manpower productivity * Significant investments in backend * Exit o fun successful new entrants Industry also witnessed failures like Subhiksha and Vishal Retail with many other existing layers still trying of in tune the is operations
3) View on future: Post consolidation, the sector is now revitalized and is poised to fully benefit from India's Next Trillion Dollar opportunity: i. Consumer sentiment improving ii. Same store sales