While last November’s demonetisation choked the cash-based unorganised retail trade in the country, the game-changing Goods and Services Tax (GST) is rewiring the retail eco system in other ways. 

A greater number of small grocers are rushing in to buy daily essentials from the bigbox format, a trend that companies expect to continue in the long term. 

Nearly 2.6% of traditional trade in all consumer product goods (CPG) moves through organised wholesale and has been growing faster than modern trade, albeit on a lower base. Cash and carry operators sell merchandise to local kirana stores, hotels and catering firms. 

India moved towards a unified tax structure that replaced multiple state and central levies from July 1. While the rollout has largely been smooth, consumer goods makers, retailers and trade channels have experienced some disruptions, especially in June. Most companies and distributors tried to empty their stocks by June 30 because of uncertainty over transition norms and new prices. 

While both Walmart and Metro saw sales dip in the first week of July, it recovered sharply due to increase in memberships.