1、 Employed by a non-US affiliate of BofAS and is not registered/qualified as a research analyst under the FINRA rules.Refer to Other Important Disclosures for information on certain BofA Securities entities that take responsibility for the information herein in particular jurisdictions.BofA Securitie

2、s does and seeks to do business with issuers covered in its research reports.As a result,investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.Investors should consider this report as only a single factor in making their investment d

3、ecision.Refer to important disclosures on page 24 to 27.Analyst Certification on page 21.Price Objective Basis/Risk on page 20.12852789 Retail-India Checking the retail pulse Discussing key on-ground trends and themes Industry Overview New models emerging What do on-ground trends suggest?Indias reta

4、il landscape is evolving rapidly with changing consumer preferences and new formats.The rise of quick commerce(especially in large cities)has surprised the industry.While the market(we estimate Rs110tn+by FY27)offers the opportunity for different formats/companies to grow long term,the rising compet

5、itive intensity has led to some disruption of late.In this backdrop,we visited multiple modern trade stores,scanned delivery apps/websites and met industry participants to better understand on-ground trends and learn about the initiatives taken by various organized retailers.Below are our key findin

6、gs/observations.Tier-2/3 cities the new retail turf?Moving beyond metros Organized retailers are now increasingly focusing on smaller cities 80%of new DMart openings in FY25 were in tier-2 cities and beyond.Similarly,72%of Vishal Mega Mart and 2/3rds of Reliance Retail stores are outside of tier-1 c