Indian Retail Industry: An Overview

The amazing development of the retail industry in India is a testimony to the domestic energy
consumption in the country. With 1,3 billion inhabitants, we are the second largest market in
the world for all under the sun. Liberalization, after surpassing the so-called 'Hindu rate of
development' till 1990, expanded the country's frontiers virtually.
Despite ups and downs, the country continued a constant development trajectory in the years
following, and in a period when India had been the fastest developing country in the world
for the last year or so, a stable and proactive administration has dominated the Centre.
India's growing urbanization has boosting growth, as have major changes in procedures and
reforms. While the urban and rural parts of the nation continue to grow at various rates, a
retail revolution has ignited the general growth in buying power and growing expectations of
the large medium-sized population of the country.
A retail revolution was initiated in India by an increasing midclass, now representing about a
half of the population, and by a young population of more than 58 per cent between 15 and
54 years and a median age between 29, combined with increased prosperity and the
corresponding increase in aspiratory consumption.
No wonder the dynamics of this sector have led to a boom in global retail entry, a hunters of
private equity funds, and a phenomenon of e-commerce, leading to the arrival of global retail
giants with many brands and a spread of home-grown and fast-growing companies, in the
clothing, customer-duration products and electronics sectors.

Pandemic & Retail Industry

Indian retail is undergoing a tremendous shift with the present pandemic. Retail represents 10
% of GDP and about 8 % of jobs and is one of the most significant companies. The pandemic
has significantly changed the purchasing habits, with safety being the key factor that replaces
the price range and convenience.
During the lockdown, hypermarkets saw fewer footfalls, and a lack of demand was observed
in most categories, including apparel, accessories, and durables. The major stakeholders have
their own difficulties with another nature: enormous demand increases are being addressed,
liquidity guaranteed, retail operations adapted to meet safety needs and controls, the health of
employees monitored, and staff shortages dealt with.
Outlook of the Industry – The Future
As physical marketplaces are progressively opened, entertainment, shopping, restaurants, and
other services are projected to increase in need in the future, especially in view of the
commencement of the festival season.
People would be attracted to physical shops because they had so long lacked the touch of
realism. This would make shopping more experiential.
Consumers may choose to buy e-commerce rather than physical companies. Hence, retailers
should be able to adapt to mutually beneficial conditions and create strategic alliances. The
focus should be on turning present companies into supply-oriented companies while retaining
the highest degree of security.
They are working more with suppliers of direct-to-home services and logistical services, and
this trend is anticipated to continue.

New Reality
With all the changes going on around us, the notion of traders and consumer companies
improvising or rethinking their business models to address those changes would be a clever
one.
During that time, a new meaning has been considered in scanning and companies must
synchronize their objectives and regularly engage their consumers to establish trust and
loyalty.
Retailers and consumer products companies must constantly be ready, given current
circumstances, to adjust and manage their business strategy. By combining market
opportunities with effective reactions, the company may build and improve its market
position.
Overall, retailers across the world, particularly those in brick-and-mortar businesses, will
have to learn from one another to get back on their feet. While no one knows for sure what
the global business impact of this crisis is going to be, one thing is certain: innovation and
flexibility will be crucial.
Leading players in the organized Retail
1. Pantaloon Retail
2. K Raheja Group
3. Tata Group
4. RPG Group
5. Bharati- Walmart
6. Reliance
7. Metro
8. Vivek’s Ltd
Literature Review

Role, Scope, and Challenges of Hr in Retail Sector, by Prof. Dr.Jyoti H.Lahoti, SMT.
LRT College of Commerce, Akola.
Human resources play a significant role in an organization's success. HRM is critical to the
attainment of organizational goals. In India, the retail sector has played a pivotal role,
contributing significantly to the country's economy. In this document, we understood the
study of the role and scope of human resources in the retail industry and challenges HR
managers faced while implementing HR management practices in organized retail stores. The
challenges faced by the HR department included the high turnover rate, absenteeism and the
execution of innovative practices in the retail stores. Therefore, it was found that the HRM
practice of retail stores is still in the early stage of development. Staff facilities and
appropriate performance appraisal measures will always encourage staff to do their best.
Consequently, retail stores must determine and implement appropriate human resource
practices to retain and develop workforce as a development asset.

Review of human resource management in retail industry, Manjunath Koliwad,

Research Scholar, SSSUTMS, SEHORE, MP
Manjunath Koliwad, analysed that organized retail, which accounts for roughly 17% of the
market, is growing at a rate of 20% each year. The advent of huge retail shops and shopping
malls fueled this trend. Another factor for the rise of organised retail, according to research, is
the expansion of the middle class, which now numbers over 300 million people and is
growing at a rate of nearly 2% each year. Human resource management is gradually
ascending the value chain and establishing itself as an important stakeholder in the industry.
Because of the fast-paced nature of the retail industry, having a pool of talent on hand is
essential for survival. HR, which has traditionally been viewed as a support function in retail,
must step up and take on a more strategic role as a result of the need for focused talent
acquisition, development, and retention initiatives. As well as HR's strategic integration with
the business.
Human Resource management in organized retail sector

 Recruitment: Campus recruitment or recruitment through recruiters and consultants

is done depending on the size of the number of openings or whether it's a new shop.
Advertisements in the local newspapers are placed in the shop floor sales criteria.
 Selection: Group discussions and interviews are used to make decisions. Some
merchants are required to take an admission exam, which is followed by a group
discussion and a personal interview.
 Performance Appraisal: It is one of the most contentious human resource systems.
No one in any business is ever satisfied with the system since it exposes an
employee's unpleasant truth. Because it is subjective and varies from person to
person, it is fundamentally conflict-based.
 Training and Development: India's retail business has finally come into its own, and
it is booming. Because organised retail is rapidly expanding, finding qualified human
resources for the industry is a major problem. The talent pool is limited, and the
arrival of large retailers into the market has created a tremendous need for qualified
and competent individuals in this industry. As a result, several retailers have
established Learning and Development departments within their businesses.
 Compensation: Compensation is a monetary payment made to an employee for
services performed to the company. Compensation is a motivation for employees at
all levels and can be direct or indirect.
 Rewards, Incentives and Recognition: Every store is searching for new methods to
keep their staff motivated and decrease turnover. Within the sector, introducing
awards, incentives, and employee recognition is growing increasingly popular. In
their stores, retailers such as PRIL have introduced the PERK (Performance
Enhancement Reward Kit) and the star performance of the month. They are used to
recognise and reward individual, team, and corporate achievement.
 Employee Discipline: It's a managerial tool for addressing poor employee behaviour.

HR Challenges in Organised Retail sector

 Lack of skilled manpower: The organised retailing sector is a big manpower-
intensive enterprise that hires a significant number of people. However, experienced
retail experts are in short supply. This is due to the fact that retail has never been a
well-known profession in India, and there were few retail professional courses
available just a few years ago.
 Stress in working culture: Employees in the retail business are required to work
long hours, which can lead to tiredness and a loss of enthusiasm. Furthermore, part-
time and casual jobs offer less job security, variable shifts, limitless working hours,
lower pay and benefits, and bad working conditions, all of which contribute to stress
and workplace issues.
 Lack of formal education in Retail Management: There is a need for skilled and
talented personnel to manage day-to-day operations and respond to a wide range of
client needs. Because there are few official vocational schools in India where students
may be taught, most retailers in India rely on in-house training or local institutes to
meet their training needs.
 Work Attiration: According to a recent survey, there appears to be a significant
degree of attrition in the retail industry, which is over 40%.
 Threat of Poaching: Employee poaching is rampant in the retail business, both
organised and uncontrolled. Because skilled personnel is in short supply in this
business, luring rivals' staff away by giving them more wages is a relatively simple
alternative.