ACCORDING TO 'Retail in India Getting Organised to Drive Growth',a report by AT Kearney and the Confederation of Indian Industry, retailis one of India's fastest growing industries and is expected to growtwenty-five per cent annually with expected revenues of US$ 320 billionin 2007. Here is how threemajor players in the market are responding to the growing demand ofpackaged foods and increasing competition in the modern retail market. Spencer's makes its move in India Spencer'sunlike Wal-Mart is not a stranger to India. It was patronized by ourgrandparents' generation in the outlets that were the strongholds ofthe British, for a taste of western gastronomic delights. However,today it’s re-entering in its new glitzy, savvy avatar. Spencer'slaunched the 8th Spencer's Hypermarket in India in Gurgaon, as their'signature store' catering to the upwardly mobile Indian. And that isjust what sets it apart from the other global supermart giant,Wal-Mart. "Our motive is not to offer products at rock bottom price butto sell differentiated products that can't be found easily to thediscerning for a value experience," Says Sanjiv Goenka, Vice-Chairman,RPG Enterprises." After all if we can compete with a Kirana, we cancompete with anybody," he adds. Withalready 125 stores spread across 25 cities, Spencer's Retail plans toopen a thousand stores by 2009 at almost a break neck speed. As theCEO, Spencer's Retail, Sumantra Banerjee says, "The beat rate of onestore every day is going to rise to two stores per day in the next sixto nine months and we might just consider opening a private equity or apublic issue in the process." For the time being, Spencer's is relyingon internal accruals for funding its ventures. The total investment,says Banerjee, has crossed 300 crore and will amount to fifteen hundredcrore by 2011. Banerjee, hints at a public issue in the offing, muchbefore 2009. While Spencer'spositioning is largely aimed at the niche segment, it does strive tocater to the common man so as not to be left behind in the lion's shareof the market. Their stores are divided into Spencer's Hyper, Spencer'sSuper, Spencer's Daily, Spencer's Express and Spencer's Fresh thatcombine big and small stores for Tier I, Tier II and smaller towns as well. Also,all the retail chains seem to be aiming at a cosmopolitan taste,except, with a predominant offering for people from South India or WestBengal. Goenka points out a new trend, "We are stocking all items fromSouth India and West Bengal as we notice their increasing presence inbooming towns with large disposable income."
