The Indian retail sector that has been reeling under the economic downturn will see a positive trend in consumer spending this year but its full recovery will take some time, according to global consultancy firm CB Richard Ellis (CBRE).
"Though 2009 started on a discouraging note for the retail sector, from third quarter onwards, some movement did take place...For 2010, we hope to see a positive trend in consumer spending," CBRE Chairman and MD South Asia Anshuman Magazine said, while issuing a report 'The India Retail Market View-Second Half, 2009'.
He, however, cautioned that the sector will still take some time to fully recover.
"This (full recovery) will depend on a number of factors, including economic growth and improvement in domestic consumption, consumer sentiment, availability of retail space at competitive costs and so on," Magazine said.
The economic downturn hurt the Indian retail sector badly forcing big retail players like Subhiksha and Vishal Retail to go for debt restructuring after being plagued by huge loans and liquidity crunch.
The report said, while retailers have adjusted their expansion plans to suit current market conditions and rationalised their portfolio, no major retailers have had to downsize significantly during the second half of 2009.