Organised retail to cross one lakh crore mark before 2010

By Staff
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Google Oneindia News

New Delhi, Feb 4 (UNI) Organised retailing in India growing at about 37 per cent is expected to cross the Rs 1,00,000 crore mark much earlier than 2010, from its current size of Rs 48,500 crore.

The Indian retailing industry estimated at Rs 10,36,000 crore during the last fiscal is likely to grow at 5.7 per cent per annum in 2006-07, according to the latest India Retail Report (IRR).

The size of the organised retail market in 2006 stood at Rs 48,500 crore making up a mere 4.7 per cent of the total retailing market.

''The total private consumer spend touching Rs 18,90,619 crore at current prices, with spend in the domestic retail market at Rs 15,96,802 crore growing at six per cent annually, organised retail growing at over 36 per cent is expected to cross the Rs 1,00,000 crore mark much earlier than 2010,'' the IRR 2007 said.

It added that the contribution of organised retailing to total retail sales is likely to rise to nine per cent by the end of the decade.

The report says, of the Rs 10,36,000 crore retail market, food and grocery retail is by far the single largest block estimated to be worth a whopping Rs 6,42,200 crore, but more than 99 per cent of this market is dominated by the neighbourhood kirana stores.

Clothing, textiles and fashion accessories constitute the second largest block, but the largest segment as far as the organised retailing is concerned is timewear accounting for nearly 46 per cent of the organised market share.

The books, music and gift retail industry in India is currently estimated at Rs 11,500 crore (Rs 13,300 crore at current market prices), out of which the share of organised books, music and gift retail is 12.6 per cent.

The super bookstore and leisure retailing chains like Oxford Landmark and Crossword have changed the concept of the traditional Indian bookstore format with an average size of 1,500-2000 square feet.

But despite the growth in retail space, the publishing industry continues to feel that the number of bookshops in the country is not enough to meet the demand. While these super chains have a retail presence in the top seven or eight cities, most of India is still woefully underserved where leisure retailing is concerned.

Buoyancy in the book and music business reflects the country's growing prosperity, as well as the gradual expansion of leisure retail outlets across the country.

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