“Club of Knowledge Hunters”

Country’s tier I and tier II cities to get hypermarkets by 2011

Posted by retailigence on September 23, 2008

The country’s tier I and tier II cities are expected to get 315 hypermarkets by 2011, which would sell everything, right from automobiles to a needle. This is the finding of a study jointly undertaken by industry body Assocham along with advisory service provider KPMG.

The Study named ‘Reinventing India’s Retail Sector’ in its analysis of Feasibility of Hypermarkets in Tier I & Tier II towns between 2008-11 claims that that even in year 2008, 212 towns have sufficient market potential for hypermarkets for break even existence even though this potential has yet to be realised.

It may be mentioned here that organised retail which is growing at 20 per cent annually is encouraging mall building activities at phenomenal rate which would ultimately amount to creation of chains of hypermarkets.

Releasing the study, the Assocham President, Sajjan Jindal said that given the expected growth in number of households as well as in income and consumption per household in urban India, particularly in its leading 25 towns, 5 or more hypermarkets per city are feasible even in 2008.

Going forward, in 2011, this number is anticipated to grow to 52 as a few tier III towns also gain the market potential to support 5 or more hypermarkets.

Tier IV towns that constitute the bottom of the pyramid, considered for this analysis emerge as unviable for modern retail formats not only in 2008 but also in 2011.

Source: Business Standard


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