Mumbai: Reliance Retail has got into the list of top 250 global retailers list this year, at No. 189, validating the country's strong growth in consumer spending, a recent report said.
"Reliance generates the bulk of its sales from its (fast moving consumer goods) FMCG banners. The company recorded a robust 59.2 per cent growth in retail revenue in the financial year 2015-16," said the report on global powers of retailing by Deloitte Global.
The retailing subsidiary of Reliance Industries (RIL), also operates in the apparel and accessories space with its Reliance Trends and Reliance Footprint nameplates, and in hardlines through its Reliance Digital consumer electronics chain.
"The India retail story continues to be promising. Having faced demonetisation and GST, the retail sector in India will soon be poised for a CAGR of more than 10 per cent in the coming year," Anil Talreja, partner, Deloitte India said.
"Opening up of FDI for single brand retail trade has provided a stimuli for global retailers to decide their Indian entry and presence," he said.
The consumption potential continues to be strong and attract retail companies to focus on new ways of tapping the Indian market. Digitisation and technology are predicted to play a key role in the strategy of the Indian retailer, the report noted.
Some of the trends as stated in the report are sighted in India as well like innovation, collaboration, consolidation, integration and automation.
"Further, these need to be looked at from the lens of the young consumer. Thus, the overall theme of transformative change and reinvigorated commerce resonates well with the Indian retail market," Talreja added.
With the advent of these trends in India as well as regulatory support, it is very likely that Indian companies will start showing up on the global list very soon in the coming years, he further pointed out.
The retail growth in the country has been strong all along, in part due to the fact that the country is not dependent on commodity exports.
Lately, growth has decelerated owing to the temporary effect of structural reforms such as demonetisation and implementation of a new goods and services tax.
Yet the longer-term outlook remains strong, especially as those reforms are likely to have a positive long-term benefit, the report said.
It pointed out that top 250 global retailers generated aggregated revenues of USD 4.4 trillion in 2016 fiscal year, representing composite growth of 4.1 per cent.
The top five largest retailers maintained their positions on the leader board.
"A combination of organic growth, acquisitions and exchange rate volatility shuffled the rest of the Top 10-which now accounts for 30.7 per cent of the overall Top 250's retail revenue, compared to 30.4 per cent last year," the report said.
Europe's share of the Top 250 dropped again, with 82 retailers based in Europe and the gap widened versus North America, it added.