After 50 years of unorganised retailing and fragmented kirana stores, the Indian retail industry has finally come of age and begun to move towards modernisation, systemisation and consolidation. Organised retailing in the country has shot past the Rs. 200-billion mark ($4.5 billion) which is just about 2% of the total retail sector in India – a sector growing at the rate of 8.5% per annum. The statistics indicate that there is a Rs. 9,800 billion ($225 billion) worth of retail market waiting to be tapped by the organised sector which is poised to grow at 35% per annum for the next five years.

Retailing is an important infrastructure perquisite for modernising India and will enable the country to achieve rapid economic growth. Effective development of the retail realm will ensure efficient delivery of goods and value-added services to consumers, thus making a higher contribution to the Gross Domestic Product (GDP). Global developments in the retail industry, together with changing demand patterns of Indian consumers, have impacted the retail industry format in India as well. In tandem with the economic boom, the psychographic profile of Indian consumers is changing fast. Powered by easy credit and low interest rates, consumer spending in India has been on the rise and this has been well reflected in the fast emerging Supermarkets, Hypermarkets and Shopping Malls.

As Non-metro cities control 70% of the Nation’s Wealth, the proliferation of Family Entertainment Centres (FEC’s) will offer consumers a great deal of choice at locations not too far away from home. Organised retail activities and new retail development are essential for exploring new markets across the country and the trend has substantially fuelled retail real estate developments. India is all set to emerge as a retail powerhouse and expects over 40 million sq. ft. of quality retail space in 2006, as value-based, “lifestyle centre” formats flood both Metro- and Non-Metro cities. With malls and multiplexes arriving at dizzying pace, leading players in the field are now focusing more on overall planning and smooth management, as well as brand positioning and tenant mix. So that India may develop a strong and organised retail sector and witness a phenomenal growth.