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Journalism of Courage
The exponential growth in the Indian retail market and the increased competition in the segment is now forcing organised retailers to scout for non-traditional locations to increase their footprint. The latest such location on retailers’ radar is airports with many major retail houses queuing up to take advantage of a market which is expected to grow up to Rs 5,000 crore in the next few years.
The first company to move in has been the Raheja-owned Shoppers’ Stop which has entered into a joint venture (JV) with the European-based airport retailer Nuance Group for the Indian airport retail market.
With this JV, Shoppers Stop is planning to provide offer services ranging from master concessions to distribution of international brands. ‘‘We believe, with this partnership, we will extend our unique shopping experience to airports, which will help us create a larger footprint across the country,’’ Shoppers Stop vice chairman B S Nagesh said.
The Kishore Biyani-owned Pantaloon group is also looking at taking advantage of this growing market. ‘‘We are aware about the growth prospects of the airport retail market and are evaluating the dynamics of the market. We would like to be in this space in the long run. However, we still don’t find clarity on the rental issues of the airport developers and hope that these would get cleared soon,’’ Pantaloon’s Jaydeep Shetty said.
The airport retail market in India is still at its nascent stage. However, with the government’s increased thrust towards airport development, creation of new greenfield airports, the market is set to take off. ‘‘In today’s context, airport retail is handled by a small unorganised sector with a total turnover of not more than Rs 100 crore. However, with a slew of new airports being developed, it is estimated that this sector would be valued at close to Rs 5,000 crore,’’ retail analyst and The Loot CEO Susil Dungarwal said.
Dungarwal added that most of the growth in the airport retail market will be fuelled by the revamped airports of Delhi, Mumbai, Kolkata and Chennai and the new greenfield airports of Hyderabad and Bangalore.
Meanwhile, airport developers like Mumbai International Airport Pvt Ltd (MIAL), which is developing Mumbai airport, have laid out an ambitious plan to facilitate retail growth in the airport. ‘‘We aim to derive over 50 per cent of our total revenues from airports non-aero business. Improving retail selling is an important part of this plan,’’ MIAL MD G. V. Sanjay Reddy said.
