The Hindu Business Line : `Organised retail to cross Rs 1-lakh cr by 2010'

ESTIMATING organised retail to log growth rates of between 25-30 per cent over the next few years, an Images-KSA Technopak study has pegged this industry to cross the Rs 1-lakh crore mark by 2010.

"The size of the organised retailing market stood at Rs 28,000 crore in 2004, making up mere 3 per cent of the total retailing market. Moving forward, organised retailing is projected to grow at 25-30 per cent per annum and is estimated to reach Rs 1,00,000 crore by 2010. Its contribution to total retailing is likely to rise to 9 per cent by the end of the decade," the KSA Chairman, Mr Arvind Singhal, said during the ongoing 7th KSA Retail Summit 2005.

The Images-KSA study found that the last few years have seen rapid transformation in many areas and setting scalable and profitable role models across categories, thus fuelling the rapid growth in retail. It projected between Rs 2,000-2,500 crore investments pouring into this sector over the next 2-3 years and over Rs 20,000 crore being committed to retail by 2010.

Also, several other factors including rapid evolution of new-age consumers; partnering among brands, retailers, franchisees, investors and malls; and India finally beaming on the radars of global retail suppliers have aided the rapid boom in the sector.

By 2006-07, the study forecasts 50-million sq.ft of quality space under development; seven major cities accounting for development of 41 million sq.ft. of this; 300 malls, shopping centres and multiplexes under construction; and addition of $10 billion of business to organised retail.

Categories that hold growth prospects vis-à-vis retail include clothing, fashion accessories, textiles, footwear and sportswear, jewellery and watches, food and grocery, durables, home and entertainment.

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