Ashish Garg, MD, Promart Retail

“2013 was anticipated to be a year of recovery for the retail industry but there have been many unpredicted events which turned the table around. The rigorous tussle between the government parties, government decision on FDI and the active interstate taxation has lead to a slow down for many retailers in India. This resulted in many companies reporting losses or less revenue than anticipated. Another factor that we believe was a challenge last year was effective supply chain management where the retail industry is still a very unorganised sector. The lack of proper infrastructure and distribution channels in the country results in inefficient processes and this has been a major concern that the industry has seen.. As far as Promart is concerned, we didn’t see losses in our sheets, we did break even at a store level but our expansion plans were put on hold. Our growth rate did slowdown as compared to last year, however this year, we hope to see a positive sentiment in the retail sector. Currently, Promart has its presence across 12 states and 2 union territories. We currently have over 80 stores (including franchise stores) at over 73 locations in India. Promart plans to open 100 company owned stores by 2015, with tier 2 and 3 cities where 95 percent of our stores are located in smaller cities within India. The outlook for 2014 will depend on this year’s election and with a favourable environment this year, we see much more productivity on the retail front. The retail industry will see consolidation in the next 2-3 years as well and with many international brands wanting to make their mark in India, the retail industry is poised to grow even further which will have a positive impact on the overall economy. Rising income among consumers has led to a rise in mall culture especially across tier II and III cities. The transition in consumer behaviour, adaptation to western culture, rise in purchase power and exposure to latest technology are few of the factors that have let to rise in demand for unparallel shopping experience under one roof which will continue to be seen this year and in the coming year too.”