Retail Sectors Expecting Relaxation in FDI Investment
If consolidation was the buzzword for the retail sector in 2010, the coming year is expected to see some big-bang entries of global retail majors as the sector looks forward to a positive outcome on the relaxation of FDI norms in retail. Even while India added around 5 million sq ft of retail space in 2010, some stores were relocated and some unviable ones faced closure. Once-lucrative businesses were bought out.
While Vishal Retail was acquired partly by Shriram Group and partly by private equity fund Texas Pacific Group, Indiabulls, which had acquired Piramalís Piramyd Retail in 2007, put its retail expansion plans on hold to focus on its main businesses of financial services and real estate. Yet, with the lessons learnt from the past few years, prudent modern retailers managed to clock double-digit growth rates. Same store growth was well above 15%.
According to Thomas Varghese, CEO, Aditya Birla Retail , 2010 can rightly be