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Top Indian Retailers Plan to Invest Rs 600 Crore This Year
Jan 11, 2010

The largest Indian retailers, Shoppers Stop, Future Group and Spencer’s Retail, have planned to invest at least Rs 600 Crore this year to expand their business operations and enhance gains.

The largest Indian retailers – Shoppers Stop, Future Group and Spencer’s Retail – have planned to invest at least Rs 600 Crore in 2010, as reported by Business Standard.

Shoppers Stop is likely to enhance its expansion investment of Rs 10-12 Crore per store in 2010 although 2009 was a cautious year for it. It has planned to invest Rs 100 Crore this year.

Similarly, India’s largest retailer, Pantaloon Retail, has planned to invest around Rs 400 Crore in the expansion of its different retail formats by June 2010 to further add around 2.4 Million Sq Ft retail space.

It is expected that a lot of retailers and brands will enter the Indian market because of stabilization in retail markets around the world and better performance of the Indian economy than other countries. These two factors will give confidence to retailers for investment.

Moreover, a number of international players are in dialogue with Spencer’s Retail, Reliance Retail, Future Group for tie-ups, reveal industry sources.

RNCOS, a leading market research firm, has said in its report “Booming Retail Sector in India” that the investment will rise in near future and the total retail space will expand to reach 205 Million Sq Ft in 2010 and 350 Million Sq Ft by 2015.

“Notably, the Indian retail sector is expected to grow at a rate of 5.5% to $410 Billion (around Rs 19,03,844 Crore) by 2010 from the present about $300 Billion,” Assocham said, as reported by The Economic Times. The organized segment accounts for around 5% of the total retail market and is expected to touch the mark of $13 Billion (around Rs 60,375 Crore) by 2010 from the $9.23 Billion (around Rs 42,000 Crore) in 2009.

Rising number of nuclear families, increasing purchasing power, changing lifestyles and western culture influence are some of the key factors driving the Indian organized retail market.

According to a Research Analyst at RNCOS, “The Indian organized retail industry has posted tremendous growth over the last few years but its share is currently low. Increased investment will help the sector to expand its share. Urban and semi-urban areas can be beneficial as these areas have huge growth potential. Retailers should plan strategies to include these areas in order to gain more profits.”

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