About the Retail Sector
The retail industry bridges the gap between producers and consumers, selling goods and services directly to us. Think of your local grocery store, the online fashion giant, or even the food truck on the corner - they're all players in the retail market. From mammoth malls to independent boutiques, it encompasses diverse formats, catering to every need imaginable. From groceries to gadgets, clothes to cars, retail keeps our lives stocked and fueled. But it's not just about products; it's about experience, convenience, and building connections.
India is one of the fastest-developing marketplaces in the world. Increasing purchasing power has led to growing demand. The collective efforts of financial houses and banks with retailers are enabling consumers to go for more products with easy credit. India’s retail trading sector accounts for over 10% of the country’s GDP and around 8% of the workforce (35+ million). It is expected to create 25 million new jobs by 2030.
Future Outlook of the Retail Sector
There are several signs that the retail market in India is growing. For example, nearly 60 new shopping malls encompassing a total retail space of 23.25 million sq. ft are expected to be opened during 2023-25. E-commerce and consumer internet companies raised US$ 15.4 billion in PE/VC funding in 2022, i.e. almost twice the amount raised in 2020. Simultaneously, 100% FDI has been allowed in single-brand retail under the automatic route. It is said that the retail sector in India is expected to reach a whopping US$ 2 trillion in value by 2032.
Things To Consider Before Investing in the Retail Sector
- Target Growth Engines: Investigate projected growth rates for global and Indian Retail markets. Prioritise companies serving high-growth sub-sectors. Remember, external factors like the costs of raw materials such as rubber, copper, aluminium, thermoplastic, thermosets, and other plastics can impact profitability in the retail sector.
- Financial Fitness: Dive into the financial health of individual companies. Scrutinise profitability, cash flow, and capital efficiency to assess their operational strength.
- Competitive Landscape: Map the major players in the Indian Retail market and their market shares. Prioritise established brands with proven track records, but stay alert to potential disruptors.
- Align with Your Goals: Consider your investment timeframe and objectives. Long-term capital appreciation requires companies with strong market positions and long-term growth potential.
How To Invest in Retail Sector Stocks?
Investing in Retail sector stocks via Angel One is easy. Simply follow these steps:
- Log in to your Angel One account.
- Click on the search icon and look for your desired Retail sector stock.
- Now, place your buy order. Simply click on the ‘Buy’ button, enter your desired quantity, and select the order type.
- To complete your transaction, click on the ‘Buy’ button.
If you don’t have a Demat account with Angel One, you can open one for free online within minutes.
