Indian's organised retail sector is likely to see revenue normalise this fiscal, aligning with the trend seen last fiscal. E-tail shall maintain its superior performance over brick-and-mortar (B&M) stores as consumers strike a balance between the two channels.
Food and grocery, and the consumer durables segment will maintain healthy growth pace due to the ongoing premiumisation trend. On the other hand, the apparel segment may see modest growth due to shifts in consumer behaviour.
We believe retailers will continue promotional activities and ramp up marketing expenditure to bolster demand. That said, operating profitability across segments is anticipated to benefit from stable commodity prices and focus on cost rationalisation amidst normalising demand.
Moreover, retailers will persist with capital expenditure and expand their footprint in Tier 2 and 3 cities, which typically offer value-for-money attractiveness.
How will these aspects impact the credit profiles of retailers?
To find answers, Crisil Ratings is hosting a webinar where our experts will share views on:
Revenue outlook for B&M and e-tail channels
Profitability expectations and drivers across key segments
Store expansions and funding mix
This will be followed by a panel discussion with industry leaders and a Q&A session.
Disclaimer: This event and its content are intellectual property and confidential information of Crisil. Any use of the same without written permission of Crisil is illegal and hence punishable. Recording the webinar in any form in full or part or copying, altering, distributing or streaming the webinar is strictly prohibited and violation will attract legal action.
