India News

FMCG sales at organized retail stores grew 22% in 2018: Nielsen India report
Writer Admin
  • FMCG sales at modern retail stores in India stood at ₹41,416 crore as of 31 August 2018, the Nielsen India retail report says
  • Demonetization, GST became tailwinds for organized retail sector by triggering mass adoption of digital payments, says the report

The switch to goods and services tax (GST), acceptance of digital payments, and a consumer shift to convenience have helped push the sale of cheese, biscuits, hair conditioners, and packaged rice in modern retail stores in India for the year ended 31 August 2018. This has helped the country’s organized grocery stores register a strong 22% growth in sales, according to a report titled Reformatting Retail in India by insights firm Nielsen India released in March.

The market for fast-moving consumer goods (FMCG) sold through modern retail stores in India stood at ₹41,416 crore as of August 2018, Nielsen said.

The report measured the growth of such stores from August 2017 to August 2018, factoring in the impact of events such as demonetization and the transition to GST in 2017. “Demonetization and the introduction of GST became tailwinds for the sector by triggering the mass adoption of digital modes of payment by consumers," the report said.

However, the overall contribution of supermarkets and organized grocery stores still remains 10% of overall FMCG sales “with a greater concentration in urban areas, particularly the top 17 metro cities".