Tuesday, April 03, 2007

Shopping malls mania could lead to overkill

Retailers are continuing on their expansion plans and real estate developers are readying malls for them at a fast pace, there is a sense that the due to the huge number of malls coming up there is likely to be a glut of malls. Many major companies in the retail sector are focusing on malls for their growth but this growth could backfire. Newer entrants in the retail field such as Reliance, Aditya Birla Group, Bharti Walmart are specifically wanting to open outlets in new territories and in a sense are pushing real estate developers to these areas. ICICI Property and Technopak report that malls are likely to account for at least half of organized retail space over the next five years.

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