NEW DELHI: The retail sector made a robust recovery in Q2 2022, with transaction activity growing by more than 100% on a Q-o-Q basis, according to a research report released on Tuesday.
Overall, in H1 2022, it reported massive growth of more than 160% on a Y-o-Y basis as a result of pent-up demand causing a renewal in physical retail visits even as online shopping continued to perform strongly, says the insights released by real estate consulting firm CBRE.
"Across cities, we are witnessing brands resizing and recalibrating their physical store strategies to diversify their portfolio and expand their footprint, with 'experience' fast becoming an important frontier to bridge the retailer-consumer gap," it said.
Although supply addition was down by more than 50% Q-o-Q during the quarter, the report notes that H1 2022 saw a more than 500% increase in project completions compared to a year ago. "We expect these positive sentiments to sustain in the near term even as retailers explore innovative means to attract their consumers and drive sales on both online and offline fronts."
At the same time, another report by PGA labs expects the e-commerce retail market in India to reach $145 billion in FY26 from $48 billion in FY21 with about 15 million daily shipments.
This is primarily driven by the proliferation of D2C brands and social commerce, according to the report. Over 600 D2C brands have been launched in the country since 2016.
"Covid-19 has been one of the catalysts that have accelerated the adoption of online purchases, resulting in significant demand and supply-side changes in the E-commerce space," says the report.