FDI to give a boost to organised retail sector in India

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In recent times the consumer are showing much greater confidence and in a due response the retail players in the market are veering towards aggressive expansion plan. These developments are clearly signaling an affluent time for retail sector.

CJ: mrinal ali hazarika

Thu, Jul 29, 2010 14:30:09 IST

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Retail Industry News :

ORGANISED RETAIL sector got a boost in sales, mostly due to the improvement in operational performance, fresh Foreign Direct Investment (FDI) proposals and equity investment. In recent times the consumer are showing much greater confidence and in a due response the retail players in the market are veering towards aggressive expansion plan. All these developments are clearly signaling towards a better and affluent time for retail sector.

Moreover, in its latest move the government is going to allow FDI in the multi-brand retailing sector and there is fresh flow of equity investment in retail sector. All these factors will definitely give the Indian retail sector a much needed boost.

Notably, last year the organised Indian retail sector had to suffer a huge loss of 1,400 crore and around 2000 stores had to be closed down. To recover from this down turn the retailers had to undertake several cost cutting measures, such as reducing the staff expenditure, closing down loss making stores and going for a transition towards large format stores. All these measures helped the retail sector to make profit in the first quarter of the current financial year. Last year the credit profile of the retail sector also improved, attributed by the reduction in operational cost and implementation of better inventory management.

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