Training academies to tackle skilled manpower shortage in retail sector

Written by Mona Mehta | Mumbai | Updated: Sep 21 2009, 06:38am hrs
In the Rs 40,000-crore Indian organised retail industry, branded retail giants have charted out new plans to tackle shortage of trained manpower. They are identifying low rentals and looking for right space to make retail stores more profitable.

According to Dharmendra Manwani, chief executive officer, Jean-Claude Biguine, India, In order to overcome the lack of trained manpower in the organised retail industry, we have recently set up a manpower training academy in Mumbai. After completion of the training, they will be deployed on the shopfloor of the saloon. We will set up two more training academies in New Delhi and Bangalore in the next financial year. These academies have the capacity to produce 20 trained people every quarter.

With right human resource in place and trained manpower, Jean-Claude Biguine, India hopes to set up 20 branded saloons in metros and tier II cities with a combination of revenue sharing and rented stores in the next two years, Manwani said.

With trained manpower on the shopfloor, we have witnessed 50% to 60% growth in capacity utilisation due to repeated client footfalls, he added.

Meanwhile, with a drop in retail rentals to the tune of 25% to 45% in metros and tier II cities this year, retailers are busy identifying the right space for their stores. Among them is Marks & Spencer Reliance India, which is in the process of setting up 50 Marks & Spencer stores in the country. Nandini Sethuraman, head-marketing, Marks & Spencer Reliance India said, We are in the process of identifying the right kind of real estate space for setting up branded Marks & Spencer store. However, the process has slowed down due to delay in permits and obtaining licenses.