Super, hypermarts to corner majority of investments: Study

New Delhi- The booming Indian retail sector,
which is expected to reach a size of USD 1,011 billion by
2017, will see supermarkets and hypermarkets cornering as much
as 66 per cent of the total investments, a study by marketing
consultancy firm Technopak has said.
According to the study, in the next three to five years
there could be increased rate of shakeout with only four
categories of 'survivors' emerging in the next 3-5 years.
Predicting a clear tilt in favour of large formats on the
investment front, the study said majority of investment in the
next 6-7 years is slated for hypermarket and supermarkets with
32 per cent share and 34 per cent respectively.

While warehouse, cash and carry will have 9 per cent
share, departmental stores -- 2 per cent and other formats
which include apparel, footwear, watches, furniture,
furnishing, toys will have 23 per cent share in the total
market, it added.
According to Technopak estimates, maximum action in the
Indian retail space is going to be in top 50-60 urban markets.
"In these markets there shall be rapid margin erosion for
those competing in mainstream formats like supermarkets and
hypermarkets, which may lead to pressure on the supplying
brands as well," the study said.
Predicting a rapid transformation in the next five years,
it said the share of organised sector in total retail will go
up from the present 4 per cent to 16 per cent in 2012 and to
28 per cent by 2017.
Forecasting consolidation, the study said in next five
years top seven players will have 31 per cent of the market
share in top 150 cities, while share of next 43 players will
be just about 8 per cent.