Retail Inc to fuel hiring spree

The direct beneficiaries of the retail boom could be job seekers with 10+2 qualification and graduates from non-professional streams. The rapid pace in development of malls has already fuelled a hiring spree across metros and several towns.

To start with, Reliance Industries is in the process of hiring some 6,000 people initially for its 30,000 marts to be started across the country in the span of next two to three years, according to industry sources. ‘‘Each hypermall needs 150 people. Jobs from Reliance itself will outnumber total job addition in the retail industry,’’ a retail analyst said.

Retailing major Pantaloon has already hired some 12,000 people. Of the total employees of the firm, 92 per cent have studied up to the 10+2 level. The firm’s expansion plans include 83 cities with the hiring plans of 500 persons every month. To train the manpower, Pantaloon is also setting up a large in-house training academy.

According to Pyramid Retail CEO and MD Krish Iyer, out of 250 malls under planning and implementation stage, 30 per cent of that — 75 to 80 malls — will be completed this year. Assuming that per mall area is 2.50 lakh sq ft, total number of mall area will be 18.75 million sq feet. To man this mall area, at least 1.6 million people will be needed, he says.

On the rapid hiring in the sector, Iyer says: “Corporate India is hiring extensively. There will be exponential growth in both front-end and back-end jobs.” Hiring will come from lifestyle stores like Globus, Shopper’s Stop and Pyramid and malls like Big Bazar, Spencers and D-Mart and brand exclusive stores and chain stores which are expanding rapidly.

Foodworld—in which DSP Merrill Lynch chief Hemendra Kothari and the Rahejas recently acquired a stake—and Westside stores of Tata-owned Trent are also looking at major expansion. Pyramid Retail will also add 6 stores in the year, for which it will hire 130 people. The firm will add 500 more people by opening 24 True Mart stores in 2006.

Said Loot CEO Sushil S Dungarwal: ‘‘Along with the industry’s absorption, what is attracting the youth to the sector is statutory benefits like PF, gratuity, leave and ethical working conditions which they don’t get in the unorganised sector.’’ Many retail chains are now targetting smaller cities.

‘‘In 2004, 35-40 malls occupied around 6 million sq ft of retail space. By 2007, 200 malls will offer 75 million sq ft, a 130 per cent compounded annual growth. By 2010, India will have 500-600 malls occupying 120 million sq ft,’’ says a study by Motilal Oswal Securities. It’s good times ahead for job seekers in the retailing sector.