While retail players are upbeat about the decision of the government to allow FDI in the sector, they also said that there is absence of competition among the key players in the industry. Also, the spending ability of the people is lesser than expectations.
However, some retail brands seem to have enjoyed their stay in the market. According to Vineet Kapila, CEO of Spencer’s Retail, the retail giant has done well in the market and has grown significantly in the last 5 years. He also spoke about the developments on the FDI front and said that the company’s objective is to keep doing what it has been doing over the years. Speaking of more cooperation in the retail sector, Mr Kapila urged developers to work alongside retailers to facilitate businesses.
According to Akhilesh Prasad, senior vice president and head of National Operations of Reliance Trends, the apparel arm of Reliance Retail is planning the opening of 25 more stores by the end of the next financial year.
Mixed bag
The retail sector in the eastern region has had its share of challenges and has often found it difficult to cope with the development taking place in other metropolitans in other regions. With lesser restrictions and new political powers in place, the region has opened up to foreign investment in spite West Bengal chief minister Mamata Banerjee being against the FDI policy.
Tias Chakraborty |
A recent summit featuring some of the prominent business leaders from eastern India focussed on the retail sector in the region. Speakers at the East India Retail Summit 2012 agreed that there is a need for strong political will as well as effective policies for the development of the retail sector in India. Among other factors impeding the growth of the sector, lack of adequate space was also recognised as an important one.
