Discount retailing is the fastest growing retail segment globally. It is fast becoming, an integral part of the strategy of the Indian Retail Industry, in these times of inflation. The customer is looking to maintain quality levels, even as he seeks lower prices. Branded discount stores offer this seemingly difficult mix. The Indian customer has been feeling the pinch of spiraling prices for several months now, and the last few weeks have been good for discount retailers, especially so in the grocery and apparel segment.

The predominantly younger Indian consumer with high exposure to International brands and fashion trends is looking at more quality and value at reasonable prices.

Earlier, discount outlets sold factory/store rejects or seconds (in fact, they were called Seconds Stores, Garden’s Kinnari was one of the earliest), odd sizes and last season’s left over stock. Today, they say they offer current stock and are able to offer discounts because they source them cheap, often at end of the season and make cash payments.

Major retailers are making huge investments in real estate and in offering specialized stores. They have big plans for the future for expansion and specialization. But with thin margins and more players jumping into the fray, discount retailers have to focus on retaining customers, offering more value and lower prices. Specialization may hold the key.

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