Modern retail: much loved

The love for Modern Retail for an urban shopper is increasing by the day!
Modern retail much loved

With the advent of Modern retail, experts estimated that people will have an increased inclination to shop at the neighborhood stores. But as days go by, the trend is witnessing a shift. This shift is facilitated by numerous factors that work well with the urban population catering to today’s hectic lifestyle.

According to a recent Shopper Trends study released by Nielsen, a fifth of urban shoppers are now regular Modern Trade shoppers. 21 per cent of the urban populace now shop at Modern trade outlets. The trend observed a significant shift from the year before with an increase of 11 per cent from 54 per cent last year to 66 per cent this year. For the period January to December 2011, modern trade grew 28 per cent and garnered a share of 9.2 per cent- a jump of one per cent over last year. Also according to the study, on an average, the number of stores per shopper has stabilised to two stores indicating a strengthening of store loyalty. “A stabilisation of shoppers who spend a majority of their money within Modern Trade at this level indicates that this format is a part of the regular buying cycle for India’s new breed of urban shoppers. They are now habituated to the modern trade environment and will continue to drive its adoption through the demonstration effect,” says Adrian Terron, Executive Director, Retailer and Shopper, Nielsen India

Modern retail has grown in relevance as people prefer to shop at uncluttered spaces with are air conditioned and swifter for purchasing products. Also these outlets boast of cleaner spaces adding to the hygiene quotient which has also gained relevance.

Strategising

Modern retail offers what lacks at a local retailer doesn’t offer- discounts and schemes. The Indian consumer who is price sensitive always looks for value for money and is more satisfied to shop where he may be getting a better deal even if the difference is marginal. Modern retailers have picked up on this quite well and save on offer deals for majority of the products they stock. 54 per cent shoppers today, expect to pick up things on offer when going to these stores. This empathy has grown by a whopping 15 per cent over time. As per the Shopper Trends study, 35 per cent of Modern Trade shoppers today cite buying bulk prices as their response to rising food prices. Retailers have succeeded in creating ‘deal-weeks’ as annual events that cater to a growing breed of bargain seekers thought the year. “With an expanding thrust by retailers to draw shoppers and an external environment rife with inflationary pressures on the household budget, India’s shoppers unwilling to give up their new found fondness for better shopping experiences are gravitating towards promotions. The shift towards larger packs with shoppers buying bulk packs every fortnight is more prevalent in categories like brand staples. This also points to a significant willingness by shopper to ‘stock-up’ and increase the value of each shopping trip in order to manage the monthly household budget”, opines Terron.

The love for Modern retail is growing and if the convenience levels continue to move higher, the buyer shift from local retailers to modern retailers will further move up. Local retailers need to refurbish too if they want to keep their customers coming back every time. 

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