COVID-19 to Redefine Focus Towards Organized Retail and E-commerce


As in the case of all segments, COVID-19 has impacted real estate too. The Unlock 5.0 phase has accelerated the pace towards recovery, and it will not be long before the economy rebounds fully.

The overall health, hygiene and wellness concerns have invariably given a fillip to organized retail due to their ability to ensure adherence to stringent safety and hygiene measures. An India Brand Equity Foundation estimates that organized retail will grow at 18% in 2021 as opposed to 9% in 2017. Similarly, E-commerce will more than double to 7% as compared to 3% in the previous period.

According to a report by ANAROCK and Retailers Association of India (RAI), the demand for essential goods will fuel Indian retail as consumers continue to focus on essential supplies such as food and grocery. The average bill value for essentials has shot up to 1.5 times since the lockdown from INR 650 per basket in early March to over INR 900 per basket at present.

The Indian retail industry is currently ranked 4th in the world and contributed 10% to India’s GDP and 8% to the overall employment generation in the country. The market size was USD 0.79 trillion in 2019 and is estimated to reach USD 1.75 trillion by 2026, with a CAGR of 9%-11%. However, approximately 88% of the market is in the unorganized segment, while organized and e-commerce accounts for the remaining share.

Mohit Goel, CEO, Omaxe Ltd., said, “There is a huge demand for organised retail in India, currently at 17-18%. Going forward this share is bound to increase owing to shoppers and businesses increasingly preferring cleaner and more hygienic shopping spaces. In this category, commercial redevelopments at the center of a thriving market are fast catching up which not just gives a safe. new-age and organized shopping experience but also maintains the essence and aesthetics of that location. Retail with a 2-3 year delivery timeline has better prospects. Omaxe Chowk in Chandni Chowk is one such example where Omaxe in PPP with North DMC, is developing parking for 2100+ cars, retail shops, and a food court with modern architecture, amenities and tourism touchpoints to enable shoppers to maximise their stay.”

With the re-opening of the mall in June after the lockdown, retail categories such as food and grocery, consumer durables and furniture have shown an encouraging response, according to an RAI survey. It also foresees food and grocery to recover faster as compared to other segments of retail.

The leveraging of technology in ensuring contactless and safe shopping experience to customers has become a priority for retailers and mall owners amid the transmission risk of the pandemic.

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