Last updated : January 02, 2025 3:05 pm
A quick look at what shaped the retail space in 2024.
The rising QC effect
There was an increased urgency to the way in which quick commerce (QC) became a talking point this year. From retailers bodies calling for tech support to help kirana stores and small retailers manage the challenge posed by quick commerce and regulatory intervention to curb unhealthy competitive practices by QC players to FMCG brands’ shifting presence in traditional retail, the fall in share prices of retail companies, and the rise of tech platforms stepping in with tech support to kirana stores, the impact of QC on the retail eco-system was felt across board and significantly this year. It remains to be seen how this will pan out in 2025 and influence the eco-system in this space - especially in terms of usage of real estate and manpower.
Tech as enabler across board
Technology as an enabler continued to see greater traction in retail, not just in facilitating back-end operations including inventory management, warehousing, supply chain, etc., but also in front-end customer facing touchpoints. One of the significant applications of tech could be seen in the adoption of AI tools for functions such as data analytics, store location mapping and even store design, especially with the use of Gen AI tools.
Expansion beyond metros
The year also saw brands across categories continue their expansion beyond the metros to tier 1, 2 and 3 cities. Home decor brand Wooden Street recently marked its 100th store milestone in Udaipur, and is fast expanding its footprint to tier-1 and tier-2 cities. Brand Snitch, which opened 25 stores in 8 months, announced its plans to expand across emerging markets across the country. And there were many more such brands including MiniKlub, PNG Jewellers and many D2C/F&B/QSR brands pitching their tents in smaller cities.
Rise of both value & premium formats
Another interesting trend that continued to unfold during the year was the rise of value formats with attractive pricing proposition and a wide range of offerings. Zudio led this trend making its presence felt across markets with massive retails spaces. It also reflected the growing demand for value offered in premium packaging. Interestingly, this co-existed with the rise of premium formats across categories, particularly in categories like grocery. While Nature’s Basket marked its 9th store in Bangalore recently, The Organic World recently announced its plans to open 30 stores in Hyderabad alone and there are newer players entering the space.
Global brands marking their presence
The year also saw the entry of many global brands expanding or making their presence in India. From Chicco recently opening their big flagship store in Ambience Mall, Gurgaon, and Nitori launching their India store in Mumbai, to UNIQLO opening their 15th India store in New Delhi and McDonald’s expanding presence in the North East launching their first restaurant in Gangtok, many global brands have been marking India on their expansion plans.
The year also saw increased thrust on cost optimisation by retailers, making sure every penny spent counted for something or converted to sales, which also reflected to some extent in the way they approached their store strategy including VM and design. It remains to be seen how 2025 will see retail and its eco-system evolving and adapting to new threats and opportunities - whether in terms of using tools like AI or addressing the challenge posed by quick commerce, cost of raw materials, availability of real estate space, manpower utilization, or other factors.