Modern trade growth likely to continue for FMCG firms

MODERN TRADE, WHICH has shown signs of revival for the first time in four quarters, is projected to continue its growth momentum, driven by urban demand recovery.

- VIVEAT SUSAN PINTO

Besides an improvement in the urban consumption trends, the channel's GST-readiness versus kiranas also aided the growth in modern trade seen in the September 2025 quarter, according to top FMCG executives and consumer intelligence firm NielsenIQ. Analysts further say the revival will continue in future.

"Organised retail was better prepared for the GST transition in September versus kiranas. This was visible in pricing changes on products, point of sale machines which were upgraded; sales staff who were up-to-speed on labelling changes. There was also greater coordination with companies on inventory management," Mohit Malhotra, CEO, Dabur India, said.

He added that he sees modern trade building on these gains in the coming quarters as sentiment improves on the back of GST cuts and a shift from unbranded to branded products.