How did Indian Retailers perform in the last few years vis-à-vis US-based Retailers.

"Aalok, how did Indian Retailers perform in the last few years vis-à-vis US-based Retailers?", a trainee wanted to know while exploring the Indian Retail industry.

"Let me try to answer!"

So, let us see how the major India-based retailers and US-based retailers perform in the last 3 to 4 years. Assuming if these major retailers' performance was good, we can probably say that the retail industry performs well, like if Nifty50 or Sensex indices grow we can assume that businesses are growing.

We have considered Walmart, Amazon, and Target which are based out of the US, these are among the top retailers by Market Capitalization value. We can see that there is a linear growth in revenues of these big retailers while Amazon doubled its revenue from the year 2018 to the year 2021, owing to the accelerated growth driven by several consumers shopping online post-pandemic and largely Brick and Mortar stores like Walmart and Target able to consistently growing their top line. While the Indian based retailers D-Mart, Trent, and Aditya Birla Fashion which are among the top retailers from market capitalization value have seen more ups and downs in the revenues in the past 3 years where we can see a dip (10% to 40%) in the revenues in 2020 when the pandemic hit us and when the economy started to recover and lockdowns were lifted India based retailers showed aggressive growth due to the pent-up demand coming from the customers who were waiting to visit their favorite shopping malls, retail stores, and fashion avenues. There is a sharp increase in the revenues from the year 2020 to the year 2021 for these retailers where revenues grow from (25% to 75%).

So, we can say that there was a linear increase in revenues of US-based retailers and Indian retailers went through a topsy-turvy drive but come out with flying revenue numbers during these last 3-4 years.

Now, let us see how the share price of these giant retailers went about in the last 5 years. The share price reflects how the business is performing and what is their potential to grow further, market considers a lot more factors into this however increasing share price can be simply taken as the company is growing and there is interest from the buyers.

Source: Moneycontrol, Source: Trading view.

We can see that both US-based Retailers and India-based Retailers showed a good percentage appreciation in the share price in absolute and well as CAGR terms. Walmart has shown consistency in an increase of its share price as the revenue has been constantly increasing, Amazon's share zoomed more than 50% from the year 2020 to 2021 clearly saying people increasing their online shopping and Target as well as showing a significant increase in their share price. Pent-up demand and revenge shopping also contributed to this increase. Indian Retailers, on the other hand, showed more volatility however from the year 2020 we have seen an exponential increase in the share price of these big retailers from nearly 100% to 250% appreciation in share price we can see in these retailers from the year 2018 to April 2022 which is a very healthy sign for the Indian economy and consumption driving the recovery in the economy.

Now, let us see what is the one factor that may have helped the US and Indian retailers for such a performance even when the market was very volatile and there was a sense of insecurity.

Adoption of Technology by these retailers would have helped them in riding the tide and have a safe landing. Walmart is not just a retail company, it has positioned itself as a tech company, Digital transformation is at the core of such business, be it Walmart, Target and Amazon are the innovation leaders. Trying new tech pilots to increase convenience and customer experience is always their priority. They have an Omnichannel presence and offer similar discounts and services on each of their platforms.

?We have seen the more and more adoption of technology solutions and digital transformation in the India-based Retailers, and they are also growing a lot in the last 2-3 years, and these have helped them in sustaining and increasing the customer base. Today, providing an effective In-store Personalized Customer Engagement, and analyzing customer behavior in retail stores, is one of the only ways to make your customer sticky. Retailers also need to monetize the infrastructure and do location analytics to utilize their space effectively thereby helping in increasing their sales as well.

Talking about technological innovation and enhancing the in-store customer experience, Hughes Systique will be showcasing its?#technology?offerings for the booming?#retail?market at the IReC 2022 Show in Bangalore on 24 & 25 May. Meet our folks?Akshay Tyagi,?Amit Gupta, and?Jasveen Singh?who have a lot to tell you on how to increase revenues by implementing technologies to give a more personalized?

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