Question
Describe the present scenario of the organised retail sector in India. Explain schematically the process of buying and merchandising being followed by Shoppers Stop
Answer :
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The organised retail sector in India has undergone significant transformation from a largely traditional, fragmented and unorganised market into a more structured, technology-driven and customer-oriented industry. Organised retail refers to retail business carried out through legally registered enterprises and established formats such as department stores, supermarkets, hypermarkets, speciality stores, shopping malls, chain stores and organised e-commerce platforms. India continues to have a large unorganised retail base, but organised retail is expanding rapidly because of rising disposable incomes, urbanisation, changing lifestyles, increasing brand consciousness, digital penetration and the growing preference for convenience and better shopping experiences. India is currently one of the world's most attractive retail markets. The overall retail market is projected to exceed US$1.6 trillion by 2030, while organised retailers are expected to capture more than 35% of the market. Organised retail is also expected to reach about US$230 billion by 2030. ([India Brand Equity Foundation][1]) The apparel segment provides an important indication of this transformation. India's apparel retail market was estimated at around US$112 billion in FY2025, with organised retail accounting for approximately 41% of the market. The organised apparel segment is expected to grow faster than the overall market because consumers are increasingly choosing branded products and organised retail formats. ([India Brand Equity Foundation][2]) Several factors are responsible for the growth of organised retail in India. First, rising disposable income and the expansion of the middle class have increased expenditure on fashion, beauty, footwear, accessories, consumer durables and lifestyle products. Second, urbanisation has created large consumer markets in metropolitan and Tier-II cities. Increasingly, Tier-II and Tier-III cities are becoming important destinations for organised retailers, with a large number of new consumers entering branded and organised retail. ([India Brand Equity Foundation][3]) Third, consumers are becoming more brand-conscious and are looking for quality, variety, authenticity and better service. Fourth, the growth of shopping malls, high streets and modern commercial spaces has provided organised retailers with suitable locations. Retail leasing across India's top seven cities reached about 8.9 million square feet during 2025, indicating continuing expansion of physical retail infrastructure. ([India Brand Equity Foundation][1]) Technology has become another major feature of organised retail. E-commerce, mobile applications, digital payments, artificial intelligence, customer analytics, inventory-management systems and omnichannel retailing have changed the way retailers interact with customers. India's online retail market was estimated at about US$115 billion in 2025 and is projected to reach around US$260 billion by 2030. ([India Brand Equity Foundation][3]) Digital payments, particularly UPI, have further encouraged consumers to adopt
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