If the retail sector rulebook was changed in 2012, it's only in 2013 that international chains and other foreign investors will get down to action. Apart from the slowdown in international economies, another reason that could keep retail groups cautious is the general election scheduled for 2014.
Although foreign direct investment (FDI) in multi-brand retailing has been permitted - subject to final approval by state governments - many companies may want to wait and watch till the 2014 poll results are announced.
In an interview in September, Raj Jain, Walmart India president, had said, "Walmart is able and willing to invest in India, whatever it takes to grow a business. We know it's not a short-term investment - it's a marathon and will take time for these investments to monetise."
The next 12 months may usher in a large number of shopping centres, malls and entertainment space. While new retail brands would like to begin with the top eight cities of the country, those who are already present may expand across 10-15 cities, including tier 2 cities, said Wahi of Cushman and Wakefield.
Also, the preference may be for the franchisee and JV route, even if 100 per cent FDI is permitted in formats like single brand retail, Wahi added. IKEA is an exception.
On the whole, 2012 was about getting the retail business right in India, rather than growth, according to Technopak Advisors' Singhal, who cited examples such as the Future group and the Aditya Birla group. In 2013, retail chains are expected to focus on growth with caution.
Sourse: Rediff.com
Although foreign direct investment (FDI) in multi-brand retailing has been permitted - subject to final approval by state governments - many companies may want to wait and watch till the 2014 poll results are announced.
| The world's largest retailer, Walmart, in a 50-50 joint venture (JV) with Bharti Enterprises for cash-and-carry business in the country, is going slow on its India plan due to an ongoing investigation by the Enforcement Directorate. It recently launched a probe into possible corruption in the India operation. |  |
In an interview in September, Raj Jain, Walmart India president, had said, "Walmart is able and willing to invest in India, whatever it takes to grow a business. We know it's not a short-term investment - it's a marathon and will take time for these investments to monetise."
The next 12 months may usher in a large number of shopping centres, malls and entertainment space. While new retail brands would like to begin with the top eight cities of the country, those who are already present may expand across 10-15 cities, including tier 2 cities, said Wahi of Cushman and Wakefield.
Also, the preference may be for the franchisee and JV route, even if 100 per cent FDI is permitted in formats like single brand retail, Wahi added. IKEA is an exception.
On the whole, 2012 was about getting the retail business right in India, rather than growth, according to Technopak Advisors' Singhal, who cited examples such as the Future group and the Aditya Birla group. In 2013, retail chains are expected to focus on growth with caution.
Sourse: Rediff.com
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