Modern retail: industry Overview | Latest News India - Hindustan Times
close_game
close_game

Modern retail: industry Overview

Hindustan Times | ByNaomi Canton, Mumbai
Mar 17, 2008 04:10 PM IST

The growing middle classes - 70 million consumers are projected to become middle class over the next five years - are now demanding a better lifestyle and they have the money to pay for it...Challenges faced | Quirky facts

The huge growth of the Indian economy means that more people have more money to spend and the retail industry - with thousands of exciting and diverse job opportunities - is reaping the rewards.

HT Image
HT Image

Across India, the top 50 retailers will invest US$35 billion in modern retail in the next six years and Mumbai has emerged as the country's retail capital. Everywhere you look, malls, supermarkets, hypermarkets, convenience stores and gourmet food stores have sprung up and jobs have followed.

Hindustan Times - your fastest source for breaking news! Read now.

The growing middle classes - 70 million consumers are projected to become middle class over the next five years - are now demanding a better lifestyle and they have the money to pay for it.

Arvind Singhal, chairman of management consultants, Technopak Advisors, says that Mumbai has been the epicentre because the retail explosion here has had a domino effect.

The Major corporate houses that have diversified into retail, such as Tata Group, Godrej, Aditya Birla, K Rajeha Group and the Future Group, are all headquartered here. Moreover, the early entrants into the sector such as Shoppers Stop, Pantaloon, Crossword and Globus started here. Other trailblazing formats such as Hypercity, Croma and Nature's Basket - which originated here - are about to be rolled out across the country.

HyperCITY plans to open up 68 new hypermarkets in the next five years and increase its staff sixfold by the end of the year.

The Tata Group's retail arm, Infiniti, will open 100 Croma stores by 2010 and hire 2,000 new employees from April.

The Future Group, which owns Big Bazaar and Pantaloon, will increase its staff fivefold to 125,000 by 2010.

They are all anticipating major growth in revenues too. Hypercity already has revenues of Rs1.8bn rupees. By December it anticipates a turnover of Rs 6.6 billion. The Future Group anticipates revenues of Rs 7,500 crore this financial year. By 2010, this will more than triple to reach Rs 25,000 crore.

One of the major challenges to the industry is the lack of skilled professionals and manpower. Rupesh Basu, business head, Hypercity, said: "I think there will be a movement of people from call centres into the retail industry. The challenge is to create loyalty in staff and rather than them leaving to work in other industries we want them to make retail a career of choice."

Unveiling Elections 2024: The Big Picture', a fresh segment in HT's talk show 'The Interview with Kumkum Chadha', where leaders across the political spectrum discuss the upcoming general elections. Watch now!

Get Current Updates on India News, Election 2024, Arvind Kejriwal News Live, Bihar Board 10th Result 2024 Live along with Latest News and Top Headlines from India and around the world.
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Friday, March 29, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On