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Easier Financing
Interest rates have dropped down over a couple of years making it much easier for investors to develop a mall and economically viable for retailers to set up shops. The fall in real-estate prices as well as lower borrowing rates still ensure that current rental yields are attractive for developers.
Improved Logistics and Better Infrastructure
Infrastructure spending has improved the state of Indias roads and transport system. Connectivity has enabled the faster movement of goods, especially perishable goods, from one part of the country to another. Logistics has improved, enabling more efficient retail operations. Retailers have benefited from the improved infrastructure, and further improvements should only increase the benefits to retailers. As the retailers continue to grow their presence, there is going to be an imminent need for a single, enterprise-wide IT platform to manage operations.
Overview: At the close, it may be considered that organized retailing in India is a sunrise sector. Despite being at a fairly nascent stage of its evolution and facing certain hindrances posed by socio- economic factors, it has a fine promise to emerge as a front runner in times to come.
About the author:
Rahul Mech Jaiswal is a Retail domain Business Analyst with Dynamic Vertical Software Private Limited.
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