Many retail players from North are going the franchise-way to expand the business with the Investment Commission of India hailing retail sector as a sunrise sector expecting to grow almost three times its current level to $660 billion by 2015.
Leading the retail revolution is Punjab. Statistical department sources told FE that private consumption expenditure in Punjab today stands at about Rs 76,000 crore, which is 3.8% of the country?s total private consumption expenditure of Rs 20, 92,000 crore. In fact, Punjab has been consuming more than other states, and is significantly higher than the national average in almost every retailing category.
Punjab has a retail-space of 190-lakh sq ft coming from 40 operational malls. The state is on the threshold of a major retail boom as leading corporate houses like Reliance, Spencer which opened its first store at Jalandhar last week and plans to open stores at Chandigarh and Ludhiana this fiscal itself, Birla, Subhiksha, Piramal, Tata, Raheja, ITC, Godrej, S Kumar, RPG Enterprises, The Future Group (formerly PRIL) and fast-food retailer McDonald having half a dozen joints at Chandigarh, Mohali and Panchkula have announced major plans to liven up the retail sector in Punjab. Haryana, Himachal and Uttarakhand too are catching up fast to tap retail sector potential.
Of the 300 brands from all over the country that would be looking for franchise mode at the next edition of Franchise 2010 show being held on December 11 and 12, more than 100 major brands are from North.
Talking to FE Gaurav Marya, president, Franchise India Holdings Limited, said that ?franchise model promises to be the biggest business spectacle offering enormous opportunity that encompasses all facets of retail surrounding the fashion Zone, food zone, jewellery zone, retailer supply zone, market place and brand licensing zone?. Franchise India that began its operations from Chandigarh is a franchise?specialised group, promoted by Franchise India Holdings aiming to invest in small and mid-market companies that demonstrate the prospective for franchising.