Current Market Size of Various Retail Segments in India – Food & Grocery, Electronics, Apparels, etc

We’d like to present the Current Market Sizes of Various Segments of the Indian Retail Industry. Food and grocery remained the single largest retail category in 2011 in India with sales of 16,25,000 crore accounting for 69% of the total retail market. Organised retail accounted for a little below 3% of the sales in this category.

Electronics – Consumer Durable, IT and Mobile market is one of the largest categories of consumption in India. The market has been historically operated through the traditional channel that occupies nearly 85% of the trade. The CDIT market in India is estimated at Rs 115,000 crore in 2011. The current market is growing at over 13% and is expected to touch Rs 215,000 crore by 2016 (not including services).

Apparels Market (more…)

Pantaloon / Future Group – Store Strategy Realigned + Backend Consolidation Done

Pantaloon / Future Group is undertaking a much needed course correction and the strategy makes sense. Execution though remains key, and given the challenging macro environment with discretionary consumption slowing. Management led by Biyani noted that ramp-up of stores is now taking longer – around 18-24 months in large malls, vs. <12 months earlier due to the fact that a lot of the malls are now destination-based malls.

Same Store Sales [SSS] growth for Big Bazaar (the key format) has registered low single digit growth Y/Y. Mgmt notes that this growth should be split into two parts – certain categories like communications / jewellery that the mgmt is deliberately de-focusing, which dragged down (more…)

Shoppers Stop – Gaining on Operational Metrics + Discount Season

Shoppers Stop, India’s premium Departmental Store chain reported sales growth of 15.0% YoY to INR7.08bn. East and North India contributed 15% & 13% sales growth while South contributed mere 2% and West witnessed a 10% decline primarily due to cannibalization in Mumbai and Pune and a delayed marriage season.

Shoppers Stop Apparels vs Non-Apparel Sales
Apparels contribute 57.7% to total departmental store sales. Menswear contributes (more…)

Indian Retailers in Troubled Waters – Deterioration in Spending

The Indian Retail Sector one of the vibrant pillars of Indian Economy with consumption story to cater to a Billion population is going through turbulent times evident from growing discounts as consumer Discretionary Spending Deteriorated, which is unlikely to improve in the short term. Adding to Retailers woes is the downward revision of GDP due to policy paralysis by erstwhile FM Mr. Pranab Mukherjee.

The Retail Sector saw a downgrade to negative from stable by Fitch as funding requirements of (more…)

Yum Brands’ Focus on Pizza Hut + KFC + Taco Bell

Yum! Brands (Yum), world’s leading quick service restaurant [QSR] chain with brands like KFC, Taco Bell and Pizza Hut. Yums Same Store Sales [SSS] growth has been around 10% while Jubiliant owned Dominos has been reporting over 25% in the last several quarters.

Yum has 471 stores in India comprising 208 KFC stores, 166 Pizza Hut casual dining, 94 Pizza Hut Home Service and three Taco Bells. Pizza Hut Home Service has been growing at (more…)

Pizza Hut Vs Dominos – Business Model – Strategy Comparison in India

Pizza Hut vs Dominos in India Jubilant Foods master franchise of Dominos operates on a business model significantly different from that of its closest competitor Pizza Hut (part of Yum! Brands), which operates through at least
eight franchisees in India including Devyani and Dodsal. The key differences between the two business models are as shown below.

Franchisee rights – Exclusive rights for the whole country. (more…)