The Indian retail sector is picking up pace, despite the Government’s silence on allowing Foreign direct investment in multi-brand retail. More and more Indian companies are entering the segment either on their own or in alliance with foreign firms for setting shop in the country. Already, a large number of premium brand outlets have come up in the country, ever since the Government permitted majority control for foreign single-brand retailers in 2006.
Domestic companies like Reliance Retail, Bharti, Future Group, Essar, Shopper’s Stop and the Aditya Birla Group have their retail business going in full throttle. Many others have announced their plans for an entry into the segment. On the other hand, foreign multi-brand retailers such as Carrefour and Wal-Mart have also made plans to enter the cash & carry segment.
Ernst & Young has predicted that the organised retail market in India will touch approximately $30 billion by 2010. The overall size of the retail sector in India is expected to touch $427 billion by 2010 and $637 billion by 2015 with the organised segment expected to account for 22% by 2010, up from the present 4%.
However, there are issues that raise barriers for growth in the sector. The Government is still undecided on FDI in multi-brand retail. High rentals are forcing retailers to shift to cheaper locations or to simply down shutters. Public outcry against certain formats of organized retail have curbed growth. There are infrastructure constraints that persist, and need for greater consumer awareness. These issues and more will be discussed and debated at the
fe Round table conference on Retail .
