India to have 600 shopping malls by 2010
Wednesday, 12 December 2007, 03:05 IST
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New Delhi: There would be 600 shopping malls in India within the next three years, according to a report brought by Federation of Indian Chambers of Commerce and Industry, and Ernst and Young. The report, called Winning with Intelligent Supply Chains, also indicated that with the Indian retail industry thriving by the day, organised retail is likely to touch $30 billion by 2010 from the current $14 billion. "The sector is expected to grow rapidly to reach $30 billion by 2010 driven by the increasing number of nuclear families, working women, greater work pressure, easy accessibility and convenience," the report said. "The growth in the retail sector has driven a mall building boom across the country, with the total number of malls expected to increase to 600 by 2010 from 158 in 2005," the report added. It also said the retail sector in India is fragmented, with more than 12 million unorganised retailers across the country. "With the entry of large modern retailers over the last few years, the share of the organised market has been growing rapidly to reach five percent of the total market," the report highlighted, adding that China and Brazil took about 10 to 15 years to reach the current levels of 20 percent and 38 percent, respectively, of organised retail from five percent when they began. "The low penetration levels of organised retail in India provide huge potential for retailers to tap a highly unexplored market. Organised retail in India is likely to account for 25 to 30 percent of the total retail market in 10 years," the report added. The report also underscored some of the challenges the industry is facing, which include inadequate infrastructure, unavailability of retail space, multiple taxes, lack of clarity in policies and shortage of experts in areas such as supply chain and store management. "The retail industry loses to the tune of $120 to $130 million every year in frauds, thefts and employee pilferage, shoplifting, vendor frauds or inaccurate supervision, despite using standard and modern security features," the report emphasised. "The most significant challenge that impedes the development of an efficient and modern retail sector is an underdeveloped supply chain," it pointed out.
Source: IANS
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