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\n Early this year, Gurgaon residents Abhishek Salwan, 33, and his \n wife decided to cut down on their weekly visits to the local hypermarket \n and started preparing a monthly grocery list instead for their \n local grocer.\n Salwan is not alone. An increasing number of people are turning \n to traditional kirana stores to tame rising budgets, in the process \n impacting the usually resilient fast moving consumer goods (FMCG) \n sector.
\n \n A sector that remained defensive even during the dark days of \n 2008 is seeing a slowdown this year, especially in modern retail.
\n \n As per market researcher Nielsen, the overall FMCG growth numbers \n for H1 2013 came down to 11%, from last year’s 17%. The impact \n on modern trade, which contributes about 7% of the total FMCG \n market, saw growth rate come down to 11% during H1 2013, from \n 34% in the same period last year. Just two months into the third \n quarter, the numbers have seen only a marginal improvement owing \n to the festival season. Modern trade has been growing over 20% \n over the last few years.
\n “There is a restructuring in the industry. Sales are lower \n than last year on a same-store basis. While there is a slowdown, \n the growth numbers are still in double digits at 12%,” Spencer’s \n Retail president & CEO Mohit Kampani said, adding, “The \n major trend is that consumers are not upgrading as they were doing \n earlier. Further, retailers are not opening newer stores and even \n pulling out of existing properties.”
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