Organised food & grocery retailers topline seen clipping at 14-15 per cent next fiscal

A healthy demand from small towns will help brick-and-mortar food and grocery retailers log 14-15 per cent revenue growth next fiscal in spite of rising competition from e-commerce platforms, says a report. Last year, the segment clipped at a record 30 per cent and the projected 14-15 per cent growth, translating to three years of strong growth on the trot. This year the industry is expected to clip at 15 per cent, Crisil Ratings said in a note on Friday.

But modest demand from the discretionary segment comprising general merchandise such as crockery, home appliances and utensils, and apparel, due to inflationary pressures, will keep their operating margins range-bound at 6-6.5 per cent in the current and next fiscals, down from 6.9 per cent last fiscal, the report said.