January did not quite bring the cheer that retailers hoped it would. Some of the bigger players are stoic, they plan to review investments, juggle costs and ride out the slump. Others have not been so fortunate. Subhiksha, the grocery major has been battling a cash crunch, disgruntled employees and irate suppliers. It is trying to raise funds to stem the negative tide, but in the current market, it might not pan out quite the way they want it to.

As consumers experience another month of tight financial conditions, they are scaling down spending. Kirana stores are benefiting by the slump as is direct selling. Expert verdict is clear - retail majors will have to plan innovative marketing strategies to retain customer loyalty.

Chillibreeze Research Team

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Big Players

Organized retailers are reviewing their plans and shuffling investments around to more lucrative formats. While Spar and Spencer’s aim to grow with larger formats, Dabur is looking at smaller formats. Reliance has shelved its wholesale trading plans, while Subhiksha is hit by a cash crunch and imminent bankruptcy.

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General Trends & Information

Kirana stores seem to have benefited by the slump that organized players are facing. As consumers downsize their spends, some of India’s biggest retail majors have seen their store sales drop. Direct selling is another format that is gaining due to the slowdown.

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Pharma Retail

Recession-proof pharma retail continues to grow with more and more pharma retail chains emerging in the country. Guardian Lifecare plans for a national presence with 50 new stores.

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Lifestyle & Luxury

Contrary to the depressing show with food and grocery, home segment has seen a slight upswing this month.

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