'Organised retail will grow 45% next year'

Factors driving the sector
The sheer size of the market is attractive. This apart, technology is a key driver. It enables companies to respond to the needs without any loss of time. This conference will be a platform between retailers and technology partners to know each other's capacities and forge contracts.

New trends
Companies are keen on exploring RFID and mobile phones to reach out to the consumers better. The retailers are not just looking at deploying technology products but also at offering solutions to the consumer needs. Almost all the people coming to the retail outlet have a mobile and it's time to weave a strategy around this omnipresent gadget. Technology will help in identifying and tracking the customers. The matrices of operation -- managing stocks, staff management and others -- will improve.

Challenges and opportunities
There are a lot of challenges. There is no standardisation of processes and several systems have to be streamlined. Standard bar code is also not used now. Opportunities are plenty as Indian consumer is willing to spend. Technology will help remove middlemen.

New formats of retailing
It all started with departmental stalls. Then came the supermarkets, malls and hypermarkets among others. There will be more and bigger retailing formats in years to come. The key focus will be consumer preferences and spending ability. There will be more integration of services and you will see a spurt in tier-II and III cities also.

Outlook
Organised retail, particularly the malls, will grow between 40 per cent and 45 per cent next year. In three years, the total organised retail sector will go up to 6 per cent from the present 4 per cent. Many companies that have not looked at retailing will take to it in a big way. There will be speciality retailing like books and music, home appliances and food services that will spawn. Luxury and lifestyle accessories, automobile accessories and others too hold promise for the retailing sector. One-stop shop for all will be the mantra.

Employment potential
There is a lot of employment potential for the retail sector. About 2.2 million people will be required for the sector by 2010. At present, 1.8 million are employed. It needs selling ability and customer interaction at the front end and some analytical thinking to support the logistics at the back end. Almost 80 per cent of the staff will be on front end - they have to sell.

Has retail come of age?
Retail is still not identified by the government as an industry. But for all practical purposes, retailing is an industry in itself. The only thing is that  there is no separate ministry.

Attrition in the sector
There is always attrition in the growing sectors. At present, it is about 40 per cent in the front end but the situation is better in the back end. Companies are coming out with new strategies to retain manpower and the job roles are changed to break the monotony.

Impact of real estate prices on expansion plans
This has been a cause for concern for retail expansion in business zones and districts. But it will stablise soon. It is a problem for smaller brands as they are paying high rents. This is resulting in retailing going to smaller places like Vijayawada and Visakhapatnam.

On the allegations that large format stores are hoarding
It is a reaction of the fear that they (smaller traders) will be at loss. It is the middlemen who are creating problems. But now the Retailers Association of India has decided to take small traders with them. We will make them partners, help them grow, make some as suppliers to some retail outlets. We will make some adjustments. Organised retail has been a part of the efforts to fight inflation by giving big discounts. They will not hoard, the systems do not allow them.