Stores - September 2006 - (Page 30)

COVER STORY W Retailers map out a passage to India BY SUSAN REDA, EXECUTIVE EDITOR ord came on August 1: Wal-Mart Stores had won approval to set up a liaison office in Bangalore, India. Within hours the Indian press began reporting discussions between Wal-Mart executives and a leading Indian real estate firm, DLF Universal Ltd., about a franchise deal. Published reports suggest that DLF plans to develop more than 100 malls in 60 Indian cities over the next five years, and Wal-Mart stores could be the center- piece of these malls. The stores would be owned by DLF, with Wal-Mart taking care of the backend and other logistics. 2005 Economic Statistics Is a deal imminent? It's hard to say, as neither com- Population 1.1 billion pany is offering up anything in the way of details. GDP $801 billion Still, the prattle in the Indian press and among state- GDP growth 7.7 % side industry watchers sends a clear message: The re- GDP per head $728 tail landscape in India stands on the brink of a mas- Inflation 4.2% sive transformation, and Wal-Mart intends to play a tition. Armed leading role. Exports $89.3 billion w i t h the same Retail experts have suggested that if Wal-Mart gets Imports $128.4 billion i m p r e s s i v e demo- its business off the ground in India, the potential ex- Organized retail chains 3% graphic data as the for- ists for annual growth rates to reach triple digits over Mom-and-pop shops 97% eign retailers knocking on the next 10 years. Most say it's not a question of if Projected annual retail the door, local businessmen but when. And with the winds of change blowing, growth through 2010 25-30% a n d entrepreneurs have when looks a whole lot closer than it did just six Source: Economist Intelligence Unit, national adopted a defensive posture. months ago. statistics, STORES research Several have begun setting But it's not going to be easy by any stretch. Wal- up multi-chain retail busi- Mart and other retailers hoping to open stores in nesses intended to sew up market share before competition ar- India remain hamstrung by current regulations and stymied by infrastructure challenges that dwarf obstacles faced just about rives. any place else they've opened stores. India is an emerging retail market and it represents an op- portunity for future growth, says Amy Wyatt, Wal-Mart's in- Outside contenders for the newly-minted disposable income ternational corporate affairs spokeswoman. We are proceed- of Indian shoppers also find themselves battling local compe- 30 S TO R E S / SEPTEMBER 2006 W W W. S TO R E S . O R G http://WWW.STORES.ORG

Table of Contents for the Digital Edition of Stores - September 2006

Contents
Executive Editor's Page
President's Page
UPfRONT
NRF News
Retail People
Concept2Watch
Wi-Fi
Cover Story: Sights Set on the Subcontinent
Data Management
In-Store Applications
Real Estate
Human Resources
RFID
POS Systems
LPinformation
System Security
Asset Management
In-Store Promotion
Call Centers
E-Commerce
Order Fulfillment
Loeb Retail Letter
ARTS Update
Workplace Law
Advertisers Index
Company Index
Retail Profit Scoreboard
Retail Industry Calendar

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