Whopping investment in retail; food to garner 50% of $410 Billion

PwcLogoImageRapid economic growth, increasing disposable incomes and lavish lifestyle habits are someof the factors that would see the retail format expand exponentially in the next five years and attract a staggering investment of USD 410 bn by 2011 into this sector, concludes a study carried out by the internationally reputed consulting firm PricewaterhouseCoopers (PwC), reports PTI.

 

Half of this US$410 Bn. in investment would be directed to food-related retail while the remaining share would be allocated to non-food retail, says the study entitled ‘From Sao Paulo to Shanghai – New Consumer Dynamics: The Impact on Modern Retailing’..

FoodPlateImage

The majority of this estimated US$ 410 Bb. investment in retail will be directed toward the two most popular retail formats: hypermarkets and supermarkets,” said PwC.

PwC has pointed out that a growing population, a youthful workforce and soaring consumer confidence are “solid arguments for long-term growth in India.” “Indian consumers’ lifestyles and shopping habits are evolving rapidly. Discretionary spending witnessed a 16 per cent increase for the urban upper and middle classes.

“Lifestyle habits are shifting from austerity to complete self-indulgence and Indians are now unapologetic about spending lavishly on non-essential goods such as luxury watches, cars, hi-tech products etc,” it said.

Interestingly, Prime Minister Manmohan Singh had earlier this month pegged India’s investment requirement for the core sector at USD 320 billion.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s