Indian retail to touch $500-bn by 2012

New Delhi: The Indian retail sector will reach the $500-billion mark in the next 5 years, said a top retail consultant.

"It will expand considerably from its present size of $350 billion and touch the $500-billion mark by 2012," PTI quoted Consult's CEO Harish Bijoor as saying at CII retail summit in Mumbai on Thursday.

"The retail sector is seven times larger than IT and catering to the domestic market whereas IT, due to its low penetration here, is aimed at the foreign markets," Bijoor added.

Highlighting the immense potential the domestic retail sector holds, Hypercity's CEO Andrew Levermore said: "India is at the peaking stage and not anywhere close to saturation point."

He said that big global players who had not yet come here were missing a good business opportunity.

Drawing attention to some of the challenges faced by the sector here, Levermore said that these comprised of real estate, man-power and logistics. "Besides, there is also a shortage of quality and trained staff," he said.

Levermore said the customers here were now better informed than ever before, with the ability to buy anything, anywhere and at any time of the day.

The challenge for retailers would be in delivering authenticity, credibility and with consistency.

"Going forward, supply chain would be the biggest challenge for retailers," he added.

FCB-Ulka Advertising Pvt Ltd's, Executive Director and CEO M G Parameswaran said the use of data analytics would make loyalty programmes better.