Wednesday, February 28, 2007

Global retail firms will account for 40% of retail investments

The Economic Times writes about the latest ICICI Property Services-Technopak Advisors white paper that has lots of interesting figures for the country's retail industry. According to the report, international retailers like Wal-Mart, Tesco, Metro and Carrefour will account for 40% of the estimated $30 billion investment over the next 4-5 years in. The remaining investment will be shared by leading Indian retailers such as Future Group, Reliance, K Raheja Group and upcoming retail companies such as AVB Group. It has been estimated that 94% of this $30 billion investment will be taking place in urban markets, of which over 60% will be in the top 25 cities.

Food and grocery will of course get the maximum investments in the hypermarket, cash-and-carry and supermarket formats. While malls will also receive investment, it will be the high street locations that will play a major role in the apparel and clothing sectors. Being sporadic purchases, furniture and consumer durable categories are likely to lead to specific real estate developments such as specialty stores.

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