The organised retail sector in India has been witnessing winds of changes in the last couple of years. Hundreds of small, medium and large format supermarkets, hypermarkets and malls
are being developed or are already in operation in all the major cities and larger towns. According to some estimates some 600 malls will have opened doors throughout India by 2010 and total organized retail space would amount to 90 million sq.ft. Nevertheless, the unorganized retail sector will probably continue to dominate the retail sector of India for many years to come despite these changes as the amount of investment needed to change the shopping habits of over 1.1 billion consumers is a massive process. Shopping in India comes in all flavours, both traditional and modern, making it a very interesting experience.
Bazaars, markets, street vendors coincide with more the modern shops. There are an estimated 12 million retail outlets of which some 78 per cent are family run businesses.
The organised retail sector currently accounts for less than six per cent (ca Rs 780 bn) of the total retail business (approx. Rs 13.3 trillion in 2007) in India. The organised sector is expected to grow to Rs 2.3 trillion by 2010.
Subhiksha, a discount retail chain launched in 1997 has grown to a 1000 store chain. Another rapidly expanding grocery retail chain is Reliance Fresh, with nearly 600 stores as at June 2008. Reliance, as an example, has shutdown grocery stores or postponed expansion plans in a few sensitive states such as Uttar Pradesh, Kerala and Orissa due to growing protest among certain groups, both civil and political, opposing the entry of MNC/large corporate owned organized retail into the market.
Other growing retail chains include Spencer's with a total of some 400 various category retail stores including hypermarkets, Aditya Birla's More chain of grocery stores, TOTAL hypermarkets and Arvind Mills Megamarts (75 outlets). Bharti has recently tied up with Wal-Mart to build a chain of retail stores in various categories.
FDI is presently not allowed in the consumer retail sector although foreign investment in cash and carry and single-brand retail is allowed.
Franchising business is gaining momemtum in India at an annual growth rate of 30 per cent and valued currently at approx. Rs 50 bn.
Above pic - The Forum shopping mall - Bangalore
Right pic - Downtown Bangalore's busy Central Mall
Shopping Malls and Retail Chains
Selected Shops and Brands, Cash&Carry
Apparels, Sports, Crafts, Footwear & Fashion
A Subway outlet in Chennai. Subway is expanding in India and currently has approx. 140 outlets.
Distribution / Supply Chain
Photo Gallery - Copyright Timir Mozumder
Citycentre - Kolkata (Bidhannagar)
Citycentre is a mall with a unique architecture. Designed by Charles Correa,
the commercial complex is distinguished by modern pastel coloured rectangular buildings.
Spencer Plaza - Chennai
The Forum and Garuda Mall - Bangalore