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Essential Commodities Fuel Retail Revival, Avg. Bill Value up 1.5X Over Pre-COVID-19 – ANAROCK-RAI Report | ||
Mumbai, Maharashtra, India
Amidst the pandemic-induced slowdown, essential goods will fuel Indian retail industry’s growth in the coming quarters as consumer expenditure continues to remain focused on essentials - particularly food and grocery - reveals the latest report by ANAROCK & Retailers Association of India (RAI) titled ‘Indian Retail – Certainty Despite Headwinds’. The average bill value for essentials has gone up 1.5 times after lifting of lockdown - from INR 650 per basket in early March to more than INR 900 per basket presently.
ANAROCK-RAI Retail Report
Food and grocery, followed by apparel, FMCD and electronics, furniture and home furnishings and QSR will see a V-shaped recovery within the next 2-3 quarters. Other segments like beauty, wellness and personal care and home essentials may take 4-6 quarters to recover fully.
Organised retail and e-commerce are on an upswing. According to IBEF, the share of Indian organized retail will double to 18% in 2021 (from 9% in 2017). Likewise, e-commerce is expected to more than double to 7% from the previous 3% in the same period.
Anuj Kejriwal, MD & CEO - ANAROCK Retail says, “COVID-19 will work as a catalyst for the growth of organised retail and e-commerce in India. Online spending is on a marked rise with online shoppers projected to increase from 15% in 2019 to 50% of the total online population by 2026.”
“In other new retail industry trends, omnichannel retailing is evolving rapidly with brands collaborating actively to enhance their reach. Many are using malls or in-mall stores as urban warehouses to ensure a faster delivery to customers and are tying-up with existing e-commerce/delivery portals to leverage their existing network and ensure reduced additional cost.”
Kumar Rajagopalan, CEO, Retailers Association of India (RAI) says, “Omnichannel was gaining importance before the pandemic. he pandemic has enhanced the importance of retailers having an omnichannel strategy since concepts of digital browsing, click and collect, curbside delivery, video shopping etc. have gained importance. The pandemic has propelled consumers to purchase based on convenience either as delivery to home or by shopping at offline nearby stores or by time scheduled shopping.”
In today's pandemic-transformed retail landscape, essential commodities are a top priority for Indian shoppers. Recent surveys by RAI suggest that grocery and fashion are the top two preferred options immediately after relaxations in lockdown. As many as 33% of consumers were excited to shop post the lockdown while 75% of respondents in tier-II & tier-III cities plan to visit stores in malls in the next 3 months. Offline retailers have witnessed a conversion rate of 90% post-COVID-19 versus 20% - 40% pre-COVID-19.
A Sanitized Shopping Experience The report further highlights that hygiene and sanitation measures being adopted by malls and store operators to combat the COVID-19 blues. Above all, mall owners are looking to minimize touchpoints by going digital and sanitizing cars before letting them in the parking spots. With valet services, cars are sanitized before and after the car is returned to a customer. Sanitization of customers' belongings before mall entry also figures high on the list.
Store operators are sanitizing apparel after every trial, and steam-ironing them before returning them to the rack after 24 hours. Apart from social distancing markers at billing counters, both bags and products are sanitized after purchase. Many are also using technology for consumers to order before entering the store, or for home delivery of products. Automation and contactless technology will redefine the shopping experience in the future, and retailers will need to adopt such technologies.
Other Highlights
Download the report: www.anarock.com/research-insights/indian-retail-certainty-despite-headwinds.
About ANAROCK ANAROCK is India’s leading independent real estate services company, chaired by Anuj Puri, with 14 offices across India and the Middle East, and 2000+ experienced professionals. The Company has diversified interests across the real estate lifecycle and deploys its proprietary technology platform to accelerate marketing and sales.
ANAROCK’s services include Residential Broking & Technology, Retail (in partnership with Vindico), Commercial, Investment Banking, Hospitality (via HVS ANAROCK), Land Services, Industrial and Logistics, Investment Management, Research, Strategic Advisory & Valuations and Project Management Services (in partnership with Mace). The Company has a unique business model, which is an amalgamation of traditional product sales supported by a modern technology platform with automated analytical and reporting tools. This offers timely solutions to its clients, while delivering financially favorable and efficient results.
Within a period of three years, ANAROCK has become the fastest growing real estate company in India. Our assurance of consistent ethical dealing with clients and partners reflects our motto - Values Over Value.
For more information, please visit www.anarock.com
About Retailers Association of India Retailers Association of India (RAI) is the unified voice of Indian retailers. RAI works with all the stakeholders for creating the right environment for the growth of the modern retail industry in India. It is a strong advocate for retailing in India and works with all levels of government and stakeholders with the aim to support employment growth and career opportunities in retail, to promote and sustain retail investments in communities from coast-to-coast, and to enhance consumer choice and industry competitiveness.
For more information, please visit: www.rai.net.in. |
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