Organised food, grocery retailers' revenues to grow 20% YoY in FY23: Crisil

Brick-and-mortar food and grocery retailers will see 20 per cent revenue growth this financial year, which is the same growth clocked the previous financial year, according to a report by Crisil Ratings.

The rating agency said that higher realisation is due to commodity inflation, market share from the unorganised segment. Also, despite heightened competition from quick commerce players, revenue of food and grocery retailers will be higher by 38 per cent compared to FY20.

The report also said that operating margins are expected to sustain at 6.3-6.8 per cent due to better economies of scale, gradual pass-through in input prices in spite of normalisation of store rentals. In FY21 when the pandemic induced restrictions led to revenue degrowth and margins