Supermarkets in India

PROSPECTS

Proximity is a key factor behind the growth of supermarkets in India

Supermarkets in India is growing at a slow pace compared with other grocery retail channels. Nevertheless, in terms of value sales, the leading players are registering positive performances.

The competition from convenience stores is set to get fiercer

Proximity proved to be a very important factor in grocery retailing in 2017 and 2018. In the context of busier lifestyles and increasing disposable incomes, convenience stores in urban areas performed extremely well at the expense of supermarkets.

Consumers chase discounted prices, which leads to a new marketing approach

Supermarkets used price drops, offers and promotional discounts to maximise footfall and retain sales during the review period. Consumers started to shop from more than one brand/outlet to maximise value for money.

COMPETITIVE LANDSCAPE

Reliance Retail maintains its lead

Reliance Retail, with its chains Reliance Fresh and Reliance Smart, was the leading player in supermarkets in India in 2018. This is due to its low prices compared with other supermarkets.

Domestic retailers continue to dominate

Supermarkets continued to be dominated by home-grown retailers in India in 2018, and this is likely to continue in the forecast period. Most international players which have entered grocery retailing have entered hypermarkets.

Aditya Birla Retail is selling its supermarket chain More

In 2018, Aditya Birla Retail signed an agreement with private equity fund Samara Capital to sell its food and grocery retail chain More. Currently, Aditya Birla Retail runs the supermarket chain with the highest number of outlets with its flagship brand More in India.

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