Walmart retains top spot in Euromonitor retailer rankings
Walmart Inc, which owns the Flipkart e-commerce marketplace in India, retained its # 1 spot in India’s retail ranking by market research organization Euromonitor International for 2020, with rival Amazon taking second place. .
The Tata Group saw its ranking drop from five in 2019 to number six, while the Aditya Birla Group to number seven in 2019 saw its rank drop to number eight during the same period that e-commerce took the lead while those with a large offline presence suffered on account of the blockages. Euromonitor’s annual rankings were based on the value of products sold by Indian retailers in segments such as grocery, clothing, lifestyle and drugstore from January to December 2020. Overall retail sales declined in 2020, the market research organization said, without revealing any figures.
Reliance Group, which manages Reliance Retail with an online and offline retail presence across multiple categories, came in third, as it did a year ago. Avenue Supermarts, which operates the supermarket chain DMart, improved its ranking from sixth to fifth place the year before. Paytm’s parent company, One97 Communications Ltd, has moved up one spot from its top spot.
The India-specific list is part of the “Top 100 Retailers in Asia 2021” ranking published by Euromonitor International on Monday. For India, the top 10 retailers were ranked.
The report covered the entire retail industry in Asia Pacific, including markets such as Indonesia, China, Thailand, Taiwan, Vietnam and India.
The Asia-Pacific retail sector saw a 4% drop in sales in 2020, with lockdowns being imposed to contain sales from the covid-19 pandemic. The region, however, saw double-digit e-commerce growth in 2020.
The region’s tech giants such as Alibaba and JD.com have been driving the industry, according to the report, with China’s Alibaba Group Holding Ltd leading the Asian rankings.
India reported a decline in its overall retail sales in 2020 after seeing double-digit value growth in recent years, the research organization said.
After a year of decline in 2020, retail trade in India is expected to register an “immediate strong rebound” in growth in terms of current value in 2021, Euromonitor analysts said. This, they said, will be driven by the expansion led by department stores. and investments in electronic commerce.
“During the forecast period, in-store retailers, such as modern grocery retailers, are expected to look to second- and third-tier cities for growth opportunities. As more and more brands invest in e-commerce and with the increase in the penetration rate of smartphones in the country, mobile e-commerce is expected to experience a particularly strong increase, the highest in retail over the past year. the forecast period, ”Euromonitor analysts said.
India’s lockdown last year led to an increase in online sales. Essential stores were operational, but mostly smaller mom-pop stores benefited as shoppers chose proximity and convenience to shop. Modern large retail stores have been severely affected. Overall, grocery sales made good progress. More discretionary retail categories such as clothing, footwear, sporting goods and accessories were affected.
New models emerged as consumers experimented more with hyper-local deliveries. “Some consumers preferred to buy locally, going to traditional grocery stores and convenience stores to minimize time spent in stores. At the same time, food retailers have partnered with food delivery companies like Swiggy and even transportation companies like Uber to deliver groceries to consumers’ homes. With low footfall to stores selling non-essentials even after reopening after the lockdown, gamers had to think of new ways to attract shoppers, ”he said.
The retail landscape in India is set to change as e-commerce gains value in the wake of the coronavirus outbreak. Some of the world’s largest retailers are now engaged in a fierce battle for a share of the consumer’s wallet. Recently, Tata Digital, a unit of Tata Sons, acquired a controlling stake in online retailer Big Basket. More and more retailers are creating assets, both offline and online. Reliance Retail’s JioMart is set to expand into more categories after it starts selling smartphones and white goods. Last year, Reliance Retail Ventures also purchased Future Group’s vast retail assets, giving the company an edge in the retail market in India.
Euromonitor noted that e-commerce players such as Amazon, Walmart-owned Flipkart and Reliance have already partnered with traditional grocery retailers.
Never miss a story! Stay connected and informed with Mint. Download our app now !!