Spread of shopping malls is another significant trend in the Indian retailing scene. Malls spire fashion based shopping as distinct from the need based shopping inspired supermarkets and discounts stores. Malls seek to position as destination shopping locations.
Malls typically deal wit several anchors and categories. They try to achieve a proper composition of anchors, so that they can indirectly provide a large variety of merchandise to the customers.
Malls that are already well established in the country include Spencer Plaza in Chennai, Crossroads in Mumbai and Ansal Plaza in Delhi Number One Shoppers’ City Kolkata and The Sahara Mall, Gurgoan, are the ones that are added to the list.
Spencer Plaza Chennai (RPG group): Spencer Plaza is the largest shopping mall in the South and the largest indoor amusement complex in the country. The amusement facilities at Spencer Plaza include bowling alleys, pool tables, virtual reality theatres and electronic amusement arcades. The Plaza also has a swimming pool, restaurants and beauty parlors.
Crossroads, Mumbai (Ajay Piramal group): The Ajay Piramal group has set up a 1.5 lakh sq ft mall in central Mumbai. Named Crossroads, it has already become a destination in the city.
Number One Shoppers’ City Kolkata “Emami group”: Number one Shoppers’ City is the new shopping mall coming up fast in Kolkata. The mall is spread over five levels and has an area of 60,000 sq ft Real Value Projects Pvt Ltd, a part of the Emami group, has promoted it. Emami Landmark Store Pvt Ltd, a joint venture between the Emami group and the retail bookstore, Landmark has opened its outlet there. The real estate costs, etiamte at Rs 8 crore, have been borne by the Emami group. The Landmark bookstore is the chief attraction at the mall.
Sahara Mall, Gurgaon, New Delhi (Sahara group): The Sahara all, Gurgaon is owned by the Sahara India group. It occupies 2.3 lakh sq ft of space and has five floors and two basements.
Spread of retail Chains:
Emergence of chain sores/retail chains is the other development in the Indian retail scene in recent times. South India, in particular has seen the strong emergence of chain stores. Whereas the supermarket is unitary in character, the chain store, as the very name indicates, consists of a chain of retail stores owned by a single agency and operated under the same name and style in different cities/locations.
The Spencer Chain:
The stores in the Spencer chain are general stores, stocking nearly 5,000 items/stock keeping units (SKUs), from toothbrush to kitchenware. The chain stocks and sells multiple brands in the product groups.
Its objective is to become a Rs 4,000 crore retail chain in the next 10 years. At the moment, its turnover is around Rs 200 crore.
Food world, dominant component; the chain has 33 outlets at present; 29 of them are food stores called Food world, three are drug stores called Health & Glow, and one entertainment store called Music World.
International tie ups: The RPG group has worked has worked out a tie up with Dairy Farm international Hong Kong a leading food and drug retailer in the Asia Pacific region and the retail wing of the US based $40 billion Jardine Matheson group. Dairy Farm International gives technical support to the Spencer chain, the Food World chain in particular.
Industrial Houses take to retailing and Set up retail Chains:
In India, in recent years, any industrial/business houses have taken to the retailing business ad have set up retail chains RP Goenkas, K Rahejas, Tatas, Piramals, Rajan Rajehas and several others including ITC, find a place in the list. Many others have worked out their plans and are likely to enter the line in the next couple of year.
Spencer Chain (RPG Group):
The RPG group made its try into retailing with the acquisition of Spencer & Co McKinsey had recommended to RPG to get into retailing as a part of its diversification cum portfolio restructure. The total outlay of the project was Rs 100 crore.