Tuesday, November 14, 2006

Experts predict a shakeout

Financial Express reports that Reliance’s mega launch in the retail sector has propelled its rivals to ramp up operations which experts estimate will lead to a retail revolution in the next 3-5 years, followed by a shakeout. The potential for growth is still immense, with penetration only at 5% at present.

Current big guns of the retail world, Pantaloon and RPG are also expanding operations. Pantaloon will be increasing its 4 million sq ft of space in 30 cities to reach 30 million sq ft of space by 2010. RPG plans to double its 80 stores by next year, opening Spencer’s Hyper, Super and Daily in tier I and tier II cities. Piramyd is planning to increase its TruMart stores from 15 to 40 next year, mainly in tier II and tier III towns.

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