News: Retail major lines up Rs 200 cr spend in Gujarat
(DNA 17/05/2006) Ahmedabad - If Pantaloon Retail is to be believed, Gujarat is all set to be the biggest retail success story of the nation. In addition to 10 superstores, including India’s fourth Fashion Station inaugurated last week, the company plans to open as many as 50 more outlets across 15 town and cities of the state at an investment of at least 200 crore in the near future.
The group’s high-end stores Pantaloon and Big Bazaar will be opened next month in Rajkot and Surat each, while Baroda will get a ‘Central’. “After Metros like Mumbai and Delhi, Gujarat is the most important destination. Some of Pantaloon’s best and largest stores are in Gujarat. Fashion Station’s (FS) first store after Mumbai and Delhi is in Ahmedabad. Plans are afoot to establish three more FS outlets in Ahmedabad, five in Mumbai and six more in Delhi and Ghaziabad,” Sadashiv Nayak, operations head, west zone, of Pantaloon Retail, said. Gujarat constitutes around 12% of the country’s Rs 27,000-crore organised retail market, which is growing at 20% a year.
“Disposable income of an individual is arround Rs 2,500 a month is about the same in Gujarat as the metros, discounting the disparity in the cost of living. Moreover, real estate is relatively cheaper here and the non-resident Gujarati consumer base is phenomenal,” Pantaloon’s regional manager, operations Anand Adukia said.
The company plans to enter the live food retailing (restaurants) through a tie-up, but Nayak is tight lipped about the proposal. Indications are that Gujarat might get the first taste of the venture.
“Nearly 40% of any mall or multiplex’s business comes from food retailing in Gujarat. An average Gujarati eats out twice in a week, which is high by any standard,” Adukia said.
Pantaloons and Fashion Station witness over 20,000 footfalls per week with a 40% conversion rate. The average turnover of Pantaloon in Ahmedabad is Rs 10,000 per square feet per annum. The company has recently tied up with Liberty for footwear retail, Lee Cooper for apparels and Galaxy Entertainment for offering gaming opportunities.
Downtown agenda
The Kishore Biyani-led Pantaloon group plans to have six Central Malls across the country over the next two years. There are three Central Malls in the country today — in Pune, Bangalore and Hyderabad.
The group’s high-end stores Pantaloon and Big Bazaar will be opened next month in Rajkot and Surat each, while Baroda will get a ‘Central’. “After Metros like Mumbai and Delhi, Gujarat is the most important destination. Some of Pantaloon’s best and largest stores are in Gujarat. Fashion Station’s (FS) first store after Mumbai and Delhi is in Ahmedabad. Plans are afoot to establish three more FS outlets in Ahmedabad, five in Mumbai and six more in Delhi and Ghaziabad,” Sadashiv Nayak, operations head, west zone, of Pantaloon Retail, said. Gujarat constitutes around 12% of the country’s Rs 27,000-crore organised retail market, which is growing at 20% a year.
“Disposable income of an individual is arround Rs 2,500 a month is about the same in Gujarat as the metros, discounting the disparity in the cost of living. Moreover, real estate is relatively cheaper here and the non-resident Gujarati consumer base is phenomenal,” Pantaloon’s regional manager, operations Anand Adukia said.
The company plans to enter the live food retailing (restaurants) through a tie-up, but Nayak is tight lipped about the proposal. Indications are that Gujarat might get the first taste of the venture.
“Nearly 40% of any mall or multiplex’s business comes from food retailing in Gujarat. An average Gujarati eats out twice in a week, which is high by any standard,” Adukia said.
Pantaloons and Fashion Station witness over 20,000 footfalls per week with a 40% conversion rate. The average turnover of Pantaloon in Ahmedabad is Rs 10,000 per square feet per annum. The company has recently tied up with Liberty for footwear retail, Lee Cooper for apparels and Galaxy Entertainment for offering gaming opportunities.
Downtown agenda
The Kishore Biyani-led Pantaloon group plans to have six Central Malls across the country over the next two years. There are three Central Malls in the country today — in Pune, Bangalore and Hyderabad.
posted by InCar Group Press Room at 14:00
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