Retailers line up 600 Crore for investment

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Kolkata: Some of the country's largest retailers have lined up investments of at least 600 crore for 2010. Trade analysts are of the opinion that 2010 will see a number of retailers beefing up their presence in key Tier-II cities, reports Business Standard.

For Shoppers Stop, while 2009 was a 'cautious' year, 2010 is likely to see more expansion. "In 2009, we launched only two stores and added 100,000 sq ft. But in 2010, we are likely to add eight stores of around 400,000 sq ft. Currently, we have around 30 stores in India. We will have mainly large format stores," CEO Govind Shrikhande said. Shoppers Stop invests 10-12 crore per store, which works out to investments worth 100 crore in 2010.

Likewise, Pantaloon Retail, plans to spend nearly 400 crore for expansion of its various retail formats by June 2010, to add up to 2.4 million sq ft of retail space. "We have raised 500 crore in November through qualified institutional placement and are looking to raise some of the money for expansion," said Kishore Biyani, CEO, Future Group, the holding company of Pantaloon.

"Pantaloon for us is one of the best performing formats showing same-store-sales (SSS) growth in excess of 25 percent. We are looking at opening 10-12 Pantaloon stores in 2010," Biyani added.

According to Business Standard, Future Group invests between 1,500 and 3,000 per sq ft, depending on location of the property. Currently, the Future Group commands 13 million sq ft retail space in the country. Biyani hopes to make Future Group a 25,000-crore entity with a total retail space of 30 million sq ft by 2014, up from 10,000 crore right now.

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