With a positive upturn after a harsh recession, what
would be the retail scenario for the coming year 2010?
New Year is likely to give new hopes for everyone. The same
applies to the retail sector as well. Retailers are buoyant about their revival
in the coming year, 2010. Plausible revival signs for retail are on the horizon
in big cities like Bangalore, Delhi, and Mumbai. Estimates state that the
shopping fever would soon spread to the other cities revitalizing the retail
sector. Industry analyst forecast a drastic retail expansion during 2010 with
many Retail giants expanding their presence in II and III tier cities. In the
II tier cities, economy has sufficiently improved to stimulate the shoppers
interest thereby boosting up the sales figures. Luxury segment holds much
promise for the coming year.
Indian retail market is the fifth largest retail
destination; globally and owns the credit of being ranked as an attractive
market for retail investment by AT Kearneys eighth annual Global Retail
Development Index (GRDI). Retail industry is the largest segment in India, employing about 8% of the workforce, and contributing more than 10% of the countrys
GDP. During the past decade, retail industries have built up strong lifestyle
brands positioning themselves to cater to the tastes and preferences of their
consumers and utilizing the increasing income of the end users. With the
economy recovering faster than anticipated, there is a drastic change in the
consumer spending patterns. The past three months have witnessed a growth in
the retail segment. This is not merely due to the festival season.
Retailers Plans for 2010:
Spencers Retail current owns around 220 stores with a 1
million sq ft of retail space. They propose to open new standalone stores,
customizing offerings to cater to the requirements of the shoppers in their
locality. 80% of their commodities would be common all across India, while the remaining 20% would be modified matching with the tastes of the local public.
Provogue plans to open 50 retail stores in the coming two
years with an average investment of Rs.4-5 million per shop. The overall
investments are planned for Rs.200-250 million. Provogue is latest addition to
the list of retail giants who are planning to expand into Indian hinterland.
For Shoppers Shop 2009 was a vigilant year, while 2010 would
be a period of expansion. During the former year they opened two stores. In the
following year, they have chalked out plans for adding eight more stores along
with the 30 stores running successfully thereby reaching an investment of 100
crore. Their main focus would be on format stores.