Organized retail to have 37 p.c CAGR by '10

BANGALORE, INDIA: The Indian retail market would grow at a CAGR of around 10 per cent during 2007-2012 and a fresh opportunity of approximately $1000 billion for organized retail would be created by 2025, according to a study by management consulting company Zinnov.

The study adds that three per cent of the $330 billion Indian retail market is organized and is expected to grow at CAGR of 37 per cent to reach $23 billion by 2010.

The study, ‘Indian Retail and the Key Payment Solutions’, examines the current scenario of the Indian retail industry and the opportunity that exists for the card based payment solutions within the retail point of sale (POS) solutions market.

The entry of international retailers, massive investment by traditional and modern Indian retailing fraternity would help the growth of organized retail in the country. The prime driver of growth, however, will be the rising consumer expectation, says the report.

The report highlights that the booming retail industry in India would adopt new age technological solutions for its payment related issues to cash on the spurt in usage of plastic money.

The report adds that as in 2002, the card based POS terminal penetration stood at 0.3 per cent (which meant for every 311 retail shops there was one card based POS terminal).

The penetration is expected to increase to about 4.6 per cent, the study finds.