India drops 9 spots in a year!
India (14th) dropped nine places in the ranking. The global slowdown did not spare India, whose GDP growth rate slipped to 5 to 6 percent. Same-store sales volume growth slowed in 2012 across all retail segments. High operating costs, low bargaining power with vendors, and a need to discount heavily to improve sales have put pressure on margins and, therefore, retailers’ expansion plans. Real estate cost and space availability have been important issues as well. Many players are actively looking at improving sales productivity, cutting operating costs, and reducing store size to improve profitability.
Despite these declines the long-term fundamentals for India remain strong. With a large population coupled with an increasingly brand- and fashion-conscious population of young Indians, India's retail sector remains attractive. Retail growth of 14 to 15 percent per year is expected through 2015.
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