New Delhi, Sep 23 (UNI) Most of tier I and tier II cities in the country will have about 315 hypermarkets in next three years, despite economic slow down, according to a study.
Even now 212 such towns have sufficient market potential for hypermarkets for ''break even existence,'' a joint study by Assocham and KPMG claimed.
But at the same time the study said organised retail, which is growing at 20 per cent annually, is likely to decline to 15 per cent after 2011 in view of mounting competition.
Assocham President Sajjan Jindal claimed that while each of 25 leading towns in the country can afford five or more hypermarkets even now, number of such towns would grow to 52 in 2011.
The study said with organised retailers having estabished presence in top 50-60 cities and towns, mall development is not expected to grow beyond tier I and tier II cities in the next 3-5 years.
Attributing this to slow down in property market, the study said retail expansion would also be hampered by shortage of skilled sales staff and store managers.
But it said there is scope for expansion of organised retail beyond these top cities and towns even after global giants such as Wal-Mart, Tesco and Carrefour commenced operations in the Indian market because foreign players are not expected to go beyond top 40-50 cities.
UNI SAA SBA AS1709