Punjab sees retail boom

Punjab is on the threshold of a major retail boom. From just two malls spread over 270,000 square feet of gross leasable area at present, nine new projects are scheduled to be completed by the end of 2006.

This will take the total mall space in the state to 3.18 million square feet. The number of malls is expected to cross 40 by 2010.

These figures were revealed by a study on retailing in Punjab titled "Retailing in Punjab: 2020 and Beyond" released today.

The study was conducted by Images and CII. It highlights the consumption patterns in the urban and rural areas in Punjab, compared to those in the rest of the country.

It shows that Punjab's consumption level is significantly higher than the all-India average in almost every retailing category like food and beverage, clothing, footwear and education except for healthcare products, services, transport and communication in urban areas.

It is projected that there would be a four-fold increase in mall space in 2008 from now.

"With the highest per capital income in the country, that is nearly three and a half times the all-India average, coupled with an excellent infrastructure to promote new industries and support the existing ones, Punjab stands second to none in fast becoming a favoured destination for the retail industry," said Amitabh Taneja, editor of the study and director of India, International Council of Shopping Centres, USA.

Corporate houses like the Piramals, Tatas, Rahejas, Godrej, S Kumars, RPG Enterprise, The Future Group with their mega retail chains like Crossworlds, Shopper's Stop, Pantaloon and Piramyd have already announced major plans to liven up the retail sector in Punjab.

"Private consumption expenditure in Punjab during 2004-05 stood at about Rs 61,900 crore, which is 3.3 per cent of the country's total private consumption expenditure of Rs 1, 866,000 crore," added Taneja.

Talking to Business Standard, Vikram Bakshi, Managing Director, Connaught Plaza Restaurants Private Limited (McDonald's North India), said, " Punjab offers a unique opportunity in the fast food sector also eating out with the family is also a part of their total entertainment plans. There is a lot of buzz in the Tier III cities in Punjab also."

As per the National Sample Survey and retail market sizing parameters adopted by the Images-KSA Technopak India Retail Report 2005, the average per person monthly consumption expenditure during 2004-05 in urban Punjab stands at Rs 1182.9, which is higher than the national average of Rs 1149.5.

However, the average monthly consumption for rural consumers in Punjab is Rs 1,022, slightly lower than the state's urban average, but much higher than the national average of Rs 635.7 per person a month. Thus, it is Punjab's second-tier cities and semi-urban and rural towns that represent a goldmine of opportunity for retailers.