PwC sees organised retail reaching 30% of India’s $1.8 trillion retail market by FY30

While the sector still faces challenges, especially in logistics and inventory management in smaller cities, the long-term potential of organised retail remains strong, driven by evolving consumer preferences and expanding market opportunities. The organised retail market in India is set to grow significantly, with its share expected to reach 30% of the $1.8 trillion retail market by 2029-30 (FY30), according to Ravi Kapoor, Partner & Leader, Retail & Consumer at PwC India.

Traditional retail is still the biggest player, but e-commerce and quick commerce are changing the market, especially in cities where more people prefer online shopping for convenience. However, this change is happening at a slower pace in smaller cities and towns (Tier 2 and Tier 3), where traditional shopping habits remain strong.

The PwC report showed that quick commerce grew by 73% in 2023-24 (FY24), raising questions about whether it is taking business from traditional retailers or simply increasing overall sales. Kapoor said that retail spending is growing by about 9-10% each year, meaning both factors could be at play.

On the investment side, Sachin Dixit, Lead Internet Research Analyst at JM Financial, pointed out that while stock prices of companies like Zomato & Swiggy have dropped, their quick commerce businesses still have strong potential. He explained that quick commerce focuses on dense urban areas, with companies expanding into smaller city markets for growth.

The outlook for investors remains cautiously optimistic. Both experts agree that as organised channels grow, traditional retailers, particularly in urban centers, will need to adapt by modernising operations and leveraging digital channels.

Source:CNBCTV18