e-tail to lead surge of ‘modern retail’; top 7 cities to go on spending spree

The total retail spending in the top seven cities of India is projected to be more than double, from ₹3.59 lakh crore ($59 billion) in 2014 to ₹7.65 lakh crore ($127.5 billion) in 2019, a report said on Monday.

Knight Frank India, in association with the Retailers Association of India, has launched the ‘Think India. Think Retail’, which map’s India’s modern retail market across top seven cities.

The report said that the share of modern retail is estimated to increase from 19 per cent to 24 per cent during that period while share e-tail is expected to jump by more than five times, from 2 per cent in 2014 to 11 per cent in 2019. It also pointed out that the share of brick and mortar modern retail is expected to fall from 17 per cent to 13 per cent during the same period.

The report, among other things, pointed that e-tail market spending in India’s top seven cities is likely to grow more than 10 times, from ₹7,200 crore ($1.2 billion) in 2014 to ₹83,900 crore ($14 billion) in 2019, resulting in an annual growth rate of 64 per cent.

Shishir Baijal, CMD, Knight Frank India said, “Over the last decade, the concept of shopping has also undergone a sea change in terms of format and consumer buying behaviour, ushering in a revolution across the country. The Indian retailing scene seems extremely attractive for stakeholders and investors alike.”

The report said NCR will continue to lead in terms of e-tail penetration at 15 per cent in 2019, it will be closely followed by Bengaluru, at 14 per cent. The top seven cities of India will require an incremental modern retail space of 4.3 million sq ft per annum during 2015-2019.

Apparel is the largest product category in India, with a share of 22 per cent in the occupied modern retail space of the top seven cities. This is followed by the department stores and food & beverages categories, at 14 per cent and 13 per cent respectively

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