Fitch forecasts Indian retail sector stable and expanding in 2011

Fitch Rating estimates the year 2011 for the Indian retail sector to be stable. Retailers in the country are likely to benefit from buoyant sales, improved working capital management and stable margins. Total debt is expected to increase in most cases to fund growing capex requirements as companies focus on cementing their market share and retail footprint. Most retailers have announced strong capex plans for 2011. The execution risk for larger retailers is likely to be lower as the pace of space expansion in relation to current scale reduces and smaller players and newer entrants are likely to be more aggressive. This forecast is a signal for robust business opportunity to the signage players including PSPs, fabricators, sign makers, etc who are extensively engaging into the retail sector.