Blue Perro
Is It Really A Recession?
22136 new outlets announced ……..
Is it really a Recession?
*Dr. Kaneez Fatima, Director, Aravali Institute of Management Studies, Udaipur
**Mr. Arif Sheikh, COO(Shopping Malls)APMMC
Every now and then there are reports in media about the rate of growth in the retail sector.
However the following quotes and figures tell a different story:
As per the confirmed media reports in national dailies at least 22136 new outlets have been announced by different retailers (List attached) mostly by the directors of listed companies. According to Retailers Association of India (RAI) “The organized retail sector will grow by 15% (double digit) in 2008-09″. According to Technopak Advisors “Our estimates suggest modern retailing will grow by around 25% ( double digit) this fiscal” Commenting on the footfalls at the company outlets, Major brands director Kamal Kodak said, “There has been no decrease in footfalls across our brands. All brands have performed well and as compared to last year’s figures, our sales figures this year have gone up by 15 – 20 per cent.” India’s leading flower retailer Ferns N Petals has claimed that it has seen the biggest growth this year. “With our outlets across the country and through the online service, we have seen 30 per cent growth in the retail sector and 80 per cent sales increase in the online service this year during Valentine’s Day as compared to the corresponding sales in the last year. Apart from the growth which was seen during valentines, a growth of around 40 per cent is observed in the overall sale as compared to the last year,” said Pawan Gadia, VP – Ferns N Petals.
A report by the global consultancy firm, AT Kearney said “The consumer spending in India has increased by an impressive 75 per cent in the last four years and will quadruple in the next 20 years.” Moreover, India recently topped the Nielsen Global Consumer Confidence study, conducted by Nielsen, a market research company. The biannual report revealed that Indians are “the most optimistic lot globally who think that their country will be out of the economic recession in the next twelve months.”
Despite the global economic slowdown, Indian retailers are still optimistic about the India growth story. Speaking on the issue, Mr Tarun Joshi, CEO and MD of Brand house Retails said “Fashion retail has not been impacted in a big way. Not even 0.5 per cent of the working population has been hit in India.”
According to a joint study recently conducted by ASSOCHAM and KPMG, “The estimated annual growth of organized retail sector is 40 per cent. The size of the organized retail sector by 2010 is estimated to reach US$ 51 billion”
Where is the recession in Retail? There have been good sales (better than last year) on Diwali, Christmas and the extended period of discounts. Latest reports show increase in net sales in % age over ‘ Q3 07
Maruti Suzuki sold 79,190 cars last month, up 24 per cent from a year earlier (ET – March 3, 2009). Domestic sales of the SX4 and D’Zire sedans rose more than 300 per cent from year ago. The country’s largest two-wheeler maker Hero Honda Motors Ltd (HHML), on March 1,2009 reported a 24 per cent jump in its total sale in the month of February, at 3,29,055 units, as compared to 2,65,431 units in the same month last year. Two-wheeler manufacturer TVS Motors announced a 13 per cent growth in its two-wheeler sales (ET – March1,2009)The Company’s net sales rose to Rs 255.22 crore in the fourth quarter of 2008 from Rs 233.97 crore in the same quarter last year. Bata India announced it has registered a 45.44 per cent growth in consolidated net profit at Rs 59.05 crore for the fourth quarter ended December 31, 2008. The company’s net sales rose to Rs 255.22 crore in the fourth quarter of 2008 from Rs 233.97 crore in the same quarter last year. (ET – Feb. 27, 2009)
Inspite of all this optimism, paradoxically no new projects have been announced in the last few months and from the biggest mall in metros to the smallest mall in tier 2/3 cities are all on hold now. Soon the
LIST OF BRANDS & THEIR EXPANSION PLAN
S.No
Brand
Expansion Plan
No’s of Outlet Opened
1
3i Infotect
plan to open 12500 store in india
12500
2
6Ten retail
to open 3,500 stores by 2011
3500
3
about u
1
5
AOK
1
6
Banana moom
10 store under franchisee model
10
7
Be
1
8
Bg.bodyguard
Work in MBOs & EBOs
9
Bharti Retail plans expansion
to open 30 stores in NCR
30
10
Big Apple
to add 35 new stores in Delhi
35
11
BIGFlix.com
the movie rental service belonging to Reliance BIG Entertainment has announced its partnership with the Kishore Biyani-led Future Group for movie rental
12
Blanco & Nero
1
13
Blocher Blocher Partners
1
14
Blue Tonic
1
15
Bosch system speciality store
100 store in next 2 year
100
16
Bossini
launches store in Jamshedpur
1
17
Bw!tch
launches first outlet in greater kailash
1
18
Canon
plans $10 mn investment for consumer, dealer financing
10
19
Celio*
leading brand in the masculine ready-to-wear segment in France, has launched its flagship store at Courtyard, Saket in New Delhi. Spread over 2,500 square feet,
1
20
Cellucom
to open 500 stores in India by 2009
500
21
Change
to enter in india
1
22
Choki Dhani
come in Mall format
1
23
Conerstore
to open 1500 stores in next 3 year
1500
24
Croma
opens at Phoenix Mills, Mumbai
1
25
Cure & care
1
26
De-grisogono
1
27
Dell
1
28
Delnapoonam wala
1
29
East West Ethnic Foods
to open 10 outlets by March ’09
10
30
Easy day
Multi format store across the country by 2015
1
31
Enquise salon
32
Espirit
expand in 21 cities with 100 stores by 2015
100
33
Etam
1
34
Ezma
1
35
fashion yantra
1
36
Femella Fashions
to open 50 stores by 2009-end
50
37
FI
1
38
Foresight Optiocals
1
39
Forest Essentials
1
40
freelook
1
41
Ganjam jewellers
1
42
Gigi
1
43
Giordano
opens 3 more stores in India
3
44
Greg Norman
to open 10 EBOs by March 2009
10
45
Gujarat amusement Industries
1
46
Hanung Retail
plans 50 new stores
50
47
Hatsoff
1
48
Hideout
1
49
Hindware Home retail
50 outlet
50
50
Hot spot store
move to 3tier cities
1
51
Hunny
1
52
Hypercity
arrives in pink city
1
54
ID (M&B brand0
launches footwear for kids
1
55
Intouch
1
56
Jaipur gems
1
57
Jashn
1
58
jealous 21
1
59
JJ Valaya
1
60
jortun Paints
open 300 outlet by 2010
300
61
Jumbo
to open about 60 to 80 stores in the next two to three years time
70
62
Juno funwear
1
63
Kaysons
1
64
Khanna jewellers
1
65
Kotharies
1
66
Krsala
1
67
Lancome
open new store in banglore
1
68
Lava
enter india under franchisee aggrement
1
69
Lecoanetthemant
1
70
Lino perros
1
71
Lite Bite
Come with food court on highways
1
72
Livtek
expansion plan in 2 & 3 tier cities
1
73
Lotte Mart
opens in Vietnam; 30 more by 2024
30
74
Madame
plans to open 100 outlets by 2010
05 Dec 2008
100
75
Magppie
to open 40 stores soon
40
76
Max Retail
opens 2nd store in Hyderabad
1
77
Me n Moms
1
78
Mega mart
1
79
Metro C&C
invest upto Rs. 9 billion, Plan to enter in punjab
3
80
Mohit
1
81
Mont Blanc
1
82
Moschino
1
83
Mx Food
expansion with frainchisee route
1
84
Nach Dr. Mauch
1
85
NAO
1
86
Nikon
to expand its wings in Indian market
1
87
Nya Nordiska
1
88
Octave
1
89
OmniaLuo
discloses its expansion plans
1
90
Orra
1
91
Peora
1
92
Piquadro
rolls out in India; 15 more stores by 2013
15
93
Planet Sports
to open 5 more stores by June’09
5
94
Pollo Lampero
target 10 store by 2012
10
95
Priknit Retails
targets 1000 stores by 2010
1000
96
Prinz
1
97
Quatana
1
98
Raymond’s ‘Be Home’
opens in Delhi
1
99
Red Ginger
also enter in India
1
100
Reliance Autozone
launched its new store in Ghaziabad, Uttar Pradesh. Spread across 3,500 square feet of retail area,
1
101
Remanika
1
103
Rosebys
plans 240 stores by 2009-end
240
104
Rugiano
1
105
samaara.net
1
106
SFC
200 stores up to jan end
200
107
Sia Art Jewellery
1
108
Sleepin
1
109
Snowberry
plan to invest USD 50 million
10
110
SPAR
launches its maiden supermarket in Andhra Pradesh
1
111
Spencer’s
to open a hypermarket in Nashik,
1
112
Stanza
113
Sunglass Hut
has entered Indian retail market with the launch of its maiden store in national capital. Further, the Italian eyewear chain also plans to launch 100 exclusive outlets by 2015.
100
114
Sunglass World
1
115
Tara ultimo
50 outlet in next 2 year
50
116
Taylor & Shroff
launches its wine in India
1
117
t-base
1
118
TBZ
1
119
The chennai Silks
1
120
The eyewear store
1
121
Time option
1
122
Tiny girl clothing
1
123
Tommy Hilfiger
to open 10 stores by 2009
10
124
Top style
1
125
Turtle ties-up with Lifestyle
plans to open 2 stores every month
2
126
Twisted
1
127
United retail
to open 80 outlet by 2012
1
128
Urban 10
Kidswear retailer Urban 10, the flagship brand of United Retail, plans to open eight stores by the end of 2009
8
129
US pizza
re-designs their association with franchisees
1
130
Vemb
1
131
Vishal Retail
Vishal Retail has opened two more stores under the brand name Vishal Megamart and Vishal Fashionmart in Uttar Pradesh and Punjab respectively
2
132
VJC
1
133
Wadhawan
to open 1,300 stores
1300
135
Wal-Mart
appoints Doug McMillon as new President, CEO
136
Woolworth
to launch 40 more store in India
40
137
Zapak Gameplex
open 150 outlet by March 09
50
138
Zima
1
139
Cinemax
launches 3-screen multiplex in Hyderabad
1
140
Dabur
India opens ‘newu’ store in Delhi
1
TOTAL
22136
situation will become one of low supply and more demand as 22136 new outlets will soon need a place to open (we doubt there is place on the high streets across the country to accommodate even 2200 outlets)
Those who trusted us and told the great story of Retail and being the biggest employers trading globally have migrated to various retail formats/services/retail/Real estate from other industries- the Trainees and employees at junior and middle levels are paying dearly for this negativity. The prevalent negativity in the market is affecting everyone but none more so than the next generation. Most of us have seen only good times but for the youngsters who have not contributed to the present situation, is it fair to make them suffer? Thousands of students who are pursuing retail course in some of the best B- schools with dreams in their eyes of making it big in the corporate world, is it right to leave them in the lurch by writing dooms day stories ? If we can’t help them at least should not demotivate them either.
Why are we allowing the internal issues of our retail fraternity to fuel the negativity? Friends, there are 11.2 million outlets out there and there is enough space for all of us to grow even in this so called recession. If we can afford 11 million shops, we can very well afford 600 malls in this country; Let us make a concentrated effort to move ahead and spread positivity in the world.
About the Author
M.com, Ph.D, 16 yrs of experience split into academics and industry.Has presented papers in national and international conferences.
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