Private Equity (PE) investments into retail sector had witnessed a major decline since 2008, after battling the global financial crisis, economic vulnerability and several other macroeconomic factors. But just like philosophers say that every cloud has a silver lining, the retail sector also carried the silver lining and after shouldering the burden for over six years, the sector has now attracted record breaking lump sums of PE investments in this year.
The resurgence happened in 2015, where the retail sector attracted a fair $39 million of PE investments. The total FDI inflow also recorded at an impressive $70.75 million in the year. Researchers and analysts observed the momentum of the industry and were expecting the PE investments to double itself in the succeeding year. But surprising everyone, retail sector has clocked a huge $149 million PE investment in the first five months of 2016 itself.
In less than half a year of time, the PE investments in retail has surpassed the 2008 statistics. Since our global reputation is continuously being polished with improved economical forecasts and where the arch rivals China is facing economic slowdown, we can expect more investments to flood in the retail sector. With still two quarters left, this year might be the historic year for retail sector. Most likely the sector will also be surpassing the all time high PE investments recorded in the year 2012.