Organised retail is growing at a fast pace and the rate of compounded annual growth is expected to reach 35% by 2010. However, there are many issues that require urgent attention of the industry and the government to ensure that the growth momentum is not faltered.This has been highlighted in a report entitled ‘Retail in India: Getting organised to drive growth’ by the Confederation of Indian Industries (CII) and AT Kearney.
The key take aways of the report include:
- The government should give retail industry status and should also set up a regulatory body to legislate on industry norms and other aspects.
- The industry should organise itself and work together on aspects such as development of cold chain and cadre of mid-management staff.
- Retailers, and not the government, should take the initiatives on gaining consumer insight and developing the markets.
- The government should relook at some of the inconsistencies in the octroi and entry tax structures which vary from state to state.
- Lack of proper town planning has resulted in bad retail infrastructure.
- High real estate prices act as stumbling blocks.The real estate in certain cases costs as high as 10-20 per cent of net sales, which can not be sustained.
- While, some retailers have taken initiatives to meet the manpower requirement by having tie-ups with training institutes, it is not enough to meet the demand generated by the sector. More active role of the industry is required.