Retail majors plan big for more footfalls

Cushman & Wakefield estimates that 70mn sft of retail space is under development in the country.

Competition is brewing in the Indian retail sector if the research by Cushman & Wakefield is anything to go by. The research estimates that around 70 million square feet of retail space is currently under development in the country of which 41 million square feet alone is in Mumbai, Delhi, Hyderabad, Chennai, Bangalore, Ahmedabad and Pune.

It also adds that by the end of 2006, India will have more than 100 operational malls. Simply put, this could virtually mean a slugfest for companies operating in the retail space.

Entities in this sector, however, have already woken up to this fact. To outwit the competition and draw in more footfalls, retail majors have started initiatives ranging from refurbishing their interiors to organising innovative festivals.

Shoppers' Stop, for instance, at present runs 20 stores and plans to open 19 more in the next 24 months at an approximate investment of Rs 155 crore. Recently, the retail chain had organised 'Down Under Fest' featuring Australian merchandise and artistes including the Sydney Show Board dancers and Dream World characters.

This apart, it organised the 'Shop n Tour' contest where lucky customers got a chance to visit Amsterdam, Colombo and Kerala by shopping for Rs 2,000 and above.

Says Govind Shrikhande, customer care associate and chief executive officer of Shoppers' Stop Limited, "The strategy to attract more customers and more sales is a combination of various initiatives including marketing and promotions, ambience and comfortable store design and interiors besides the right and relevant product mix and good service."

The footfalls that Shoppers' Stop gets range from 800 to 9,000 per day based on various factors and Shrikhande concurs that as competition increases, these numbers can get affected temporarily.

Another retail chain, Westside, is also on an expansion binge. Trent Limited that operates Westside runs 22 such stores in the country at present. In 2006, it plans to set up eight new stores in metros and mini-metros across the country with an aim to establish at least one Westside store in almost every city with a population exceeding 5 lakh.

Says Neeti Chopra, head of marketing, Trent Limited, "The critical element for any store is its merchandise. We have great products today and are constantly improving them to offer better options to customers."

Westside has also been running promotions like its ongoing month-long summer carnival, where one can win an entire wardrobe in a 'Guess and Win' contest. This apart, the company plans to run a Westside men's wear TV commercial, in addition to promotions and events, to attract new customers.

HS Bedi, managing director of IDEB, gives a different take to the concept of dealing with competition.

He says, "Customers need variety. An interesting mix of tenants can help in getting maximum footfalls and sales for a mall." IDEB operates Sigma Mall in Bangalore and shrugging off competition, the company has embarked on an expansion plan. It has projects lined up for the next couple of years for Bangalore and Mysore, involving significant investment. Ask Bedi if competition is no deterrent and he says, "Competition is increasing but so are the footfalls."