Supermarket trade set to grow
Indunil Hewage
The supermarket trade in Sri Lanka is expected to grow 20 percent per
annum in the years to come owing to increasing purchasing power of the
consumers. It is expected that this growth would be apparent from the
next year. Richard Pieris Group Director and Chief Operating Officer
(COO) Pravir Samarasinghe said the retail market which consists of small
boutiques will also record about three to five percent growth per annum
in keeping with the Government’s objective to record seven to eight
percent economic growth in the country.
The total proportion of the supermarket trade is 15 percent out of
the retail industry in the country. The remaining percentage has been
acquired by the general trade.
It is expected that the supermarket trade proportion will increase at
an unprecedented rate in the future.
“Retaining in the supermarket trade in a profitable manner is a
challenging task as it needs more expertise and financial stability to
run the trade in a continuous manner,” Samarasinghe said. The prevailing
stiff competition among the giant players in the supermarket trade has
not attracted newcomers in the market.
In addition to that the high entry cost has also hampered their
aspiration to enter the market.
“The Government efforts to double the per capita income in five years
will also enhance disposable income of the people creating an impetus to
bolster the supermarket trade,” Samarasinghe said.
“During the last couple of years many players who entered the
supermarket trade were unable to sustain their ventures, as they were
not privileged to enjoy the various advantages reaped by major players
in the industry,” Samarasinghe said. |