And what's happening in the metros is likely to percolate down to the mini metros and smaller cities over the next five years.
This convergence has also given rise to shopping malls opting for multiplexes as anchor tenants. This model is changing the organised retail landscape, and this is likely to dominate for a few more years till alternate models emerge.
Size of retail market
According to a lifestyle consumption study by Edelweiss Securities, organised retail trade in India is now finding its feet. The share of organised retail in the total retail pie is set to increase from the current 2 per cent to about 10 per cent by 2010. This will translate to approximately Rs 1,400 billion of retail trade by 2010.
Retail space
The study further says retail space is expected to increase from 10 million sq ft in 2002 to 80 million sq ft in 2010. Retail space development in leading centres will provide high impetus to retail growth as about 38 per cent of India's high income households live in the top five cities (Mumbai, Delhi, Kolkata, Chennai and Bangalore), and an additional 28 per cent stay in mid-sized cities.
Malls
Significant growth in organised retailing during the next three years is expected in the metros and mini-metros through better performance of the existing stores, as well as opening of new stores. From 25 operational malls in 2003, the country is expecting over 220 malls by 2006 and over 600 malls by 2010, according to the Edelweiss Securities study.
Multiplexes
According to a Yes Bank report, currently the multiplex cinema segment is in its nascent stage of growth. More than 60 additional multiplexes with more than 220 additional screens are slated to commence operations by the end of 2006, a growth rate of 80-100 per cent.
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