Friday, February 1, 2008

10 top retail trends

Trend 1 Modern retail will grow but traditional retail will survive - there's place for both
Trend 2 Consumption will shift to lifestyle categories- consumers shifting evaluation from MRP to EMI
Trend 3 New retail formats will emerge and grow - small format cash & carry; investment surge in forecourt retailing: growth of Super-specialty format
Trend 4 Modern retail will witness enhanced private equity infusion
Trend 5 There will be creation of large retailer brands (private labels) - 'own label' branding trend on the rise, more in groceries, home care and clothing; provides profit margin advantage to retailers
Trend 6 There will be an interplay between retailers & suppliers - branded firms will collaborate with top retailers
Trend 7 Modern retail will face a few key bottlenecks - talent, retail space and supplier base shortages; India will witness a shortfall of almost one million people in the retail sector by 2012
Trend 8 New investments will happen in the back-end - enhanced focus on improving the supply chain; process of storing & displaying food will be in focus
Trend 9 Modern retail will benefit consumers and rural sector - rural retailing formats will ensure quality goods, easy accessibility and low rates: typical monthly shopping bill will reduce by at least 10%
Trends 10 Consolidation will increase in the retail sector - consolidation, through M&As, will increase and become the norm