Food Retail Losses: Rs 13,000 Crore in 7 Years

The only thing tougher than making money as a retailer these days is making money as a food retailer. According to a research by Crisil, food retailers in India have lost Rs 13,000 crore since 2008. Crisil says no other vertical, such as apparel, consumer durables or footwear, has witnessed similar losses.

Why is this significant? For one, at 69 percent, food contributes the lion’s share of retail revenue, and for retailers who aim to be in the top five it is difficult to get there without having a meaningful presence in the sector. Retailers realise this and have undertaken a series of measures, from right-sizing stores to exiting some product categories and increasing the share of private labels. The efforts, clearly, have not borne fruit.

Is there any chance of the losses slowing down? Not until 2018, says Crisil.