Mod­ern Re­tail Grinds to a Halt, Al­most

The Economic Times - - Brands: Creating Desire -

The mod­ern re­tail trade recorded one of its slow­est-ever sales growth in 2015 as con­sumers cut back on dis­cre­tionary spends at su­per­mar­kets amid an eco­nomic slump, which was a ma­jor blow to the con­sumer prod­ucts in­dus­try. The mod­ern re­tail seg­ment, which makes up 8% of to­tal sales for FMCG com­pa­nies, grew just 3% dur­ing the year, a sharp de­cline from the dou­ble dig­its over the last few years, ac­cord­ing to data from in­sights com­pany Nielsen.

In con­trast, sales at gro­cers, who con­trib­ute 72% of over­all FMCG sales, rose 10%. This is also be­cause FMCG com­pa­nies fo­cused on smaller pack­ages, which are mostly sold at lo­cal stores. Even chemists and smaller re­tail­ers such as pan­wal­lahs recorded higher sales growth over the year than mod­ern re­tail trade, de­spite it hav­ing a higher base. takes a look at the state of the FMCG mar­ket.

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