Sri Lanka Supermarkets to Grow 20pct Annually on Increasing Consumer Purchasing Power

23rd November 2010, www.dailynews.lk, By 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.