Global consultancy firm Technopak today said the organised modern retail segment in India will grow by over three times during the next five years to reach a figure of $80 billion.
The consultancy also said the share of private labels in the annual sales of organised retail players will also grow to around 25 per cent by 2014 from the existing 10-15 per cent.
"The organised modern retail sector, which is at present $25 billion, will grow over threefold during the next five years to reach a figure of up to $80 billion. It will be facilitated by growth in consumption level of the consumers and expansion of the modern retail sector," Technopak President Raghav Gupta told reporters on the sidelines of the Leadership Summit 2010 organised by his organisation here.
He said that the country's modern consumption level will also double within five years to an annual figure of $1.5 trillion from the existing $750 billion.
"This increase in consumption along with an average growth of 8 per cent in the economy will help the organised retail sector to grow," he said.
Technopak said that the main growth in the organised retail market will be in the food and grocery segment, followed by apparels, consumer electronics and footwear.
The consultancy added that the retail players will also become more aggressive in the private label segment.
"Private labels will grow to around 25 per cent of the major retailers annual sales within five years from around 10-15 per cent now. The private labels will increase brand penetration and also increase the margins of the retail players," Gupta said.
He added that a major area of growth would be hyper markets and super markets specially in Tier-II and III cities.
