Indian retail major, Subhiksha, hopes to extensively tap the booming retail segment and plans to open 1,000 more outlets by the year-end. “Organised retail is growing at a rate of 8-10 per cent per annum, which so far represents only about four per cent of the total retail market. We are planning to open about 1,000 stores by this December across various cities of the country,” Subhiksha President (Manpower), S Shashikanth, revealed at the FICCI Ladies Organisation symposium on retail in New Delhi on July 8, 2008.

The company is further looking at adding the stores primarily in Tier I & II cities, he said. “We are exploring smaller cities in Madhya Pradesh and the eastern part of the country,” Shashikanth added.

The average size of the outlets would be about 1,500 sq ft, he added. However, he didn’t comment on the size of investment the company is looking at for its expansion drive. When asked about the company’s plans to raise funds from the capital market, without divulging any detail, Shashikanth said, “Yes, we definitely have plans to get listed.”

Commenting on the distribution strategy and stores for the company, Shashikanth said, “All will be company owned as we do not have any franchisee concept.” The number of Subhiksha stores has risen to 1500 countrywide with over 25,000 employees from one store in Tamil Nadu in 1997.

The Indian retail industry is currently estimated at US$ 330 billion, of which the organised sector constitutes only about four per cent. The retail sector is projected to overtake the US$ 650 billion mark and organised retail, the US$ 130 billion mark by 2015.

Source : ibef.org