India’s retail industry expects growth only in second half of 2020

India’s retail industry expects growth only in second half of 2020

While major players struggled to keep themselves on the growth chart in 2019, they expect a decent double-digit growth coming back in 2020.

AgenciesUpdated: Monday, December 30, 2019, 08:25 AM IST
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New Delhi: As economic slowdown continues to hurt sales, the Indian retail industry expects to bounce back in the second half of 2020 on the back of consumer demand revival and increased spending.

While major players struggled to keep themselves on the growth chart in 2019, they expect a decent double-digit growth coming back in 2020.

But sectoral experts are cautions, saying it would depend on various factors like recovery of manufacturing and other sectors, incentives in the Union Budget and availability of money in the hands of consumers to make purchasing decisions.

"We are hopeful that consumer sentiments will turn positive as the year 2020 rolls out. The second half of 2020 could see a pickup in demand and growth," Future Retail Joint Managing Director Rakesh Biyani said.

Though the economic slowdown started in high-ticket segments like real estate, auto and consumer durables due to the credit squeeze triggered by the NBFC crisis, it has now spread to other sectors such as retail as the consumption basket shrank.

According to Debashish Mukherjee, Partner and Regional Lead, Consumer and Retail, Middle East & Africa at A T Kearney, in 2019 the sector had challenges in terms of lower growth.

"People expect growth to come back in 2020. However, it depends on (how) consumer sentiments improves and the consumer has to feel really richer than they are.

"It is not that there is zero growth but the growth is not that exciting to make that kind of purchasing decision, which they use to. In some way more money has to come into the hands of people," he said.

He also noted that there is stress in the system due to lack of funds and that is a reality.

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