“Retail in electronics is not the retail which will upset the neighbourhood store or kirana store. Similarly, retail in sports goods will not upset anybody. So there is a difference. Retail in electronics, sports goods or stationery are things that do not affect any kirana store but create a chain,” Nath pointed out. Realising the need to address these specialised “segments”, domestic players — the Future Group, Reliance Retail and Subhiksha — are entering the huge market to address these gaps in segmented multi-brand retailing. The Future Group recently opened its first licenced Staples store to address office stationery requirements and technology.

“In India, office supplies are a Rs 40,000 crore market that covers technology and office requirements. It is a large market that no other player had looked into,” said Pantaloon Retail CEO (future retail) Rakesh Biyani. The Group is already looking at making a foray into ethnic wear and the health and beauty segments, segments which have limited organised players.

Similarly, Vishal Retail Limited, which had a presence only in the hypermarket format so far, is looking at venturing into specialised segments. “Specialty stores are very limited right now. There are certain gaps like specialty stores for apparel, watches and luggage. There are gaps even where variety and price is concerned,” said Vishal Retail Limited chairman and managing director (CMD) Ramchandra Agarwal.

The company intends to enter every category — liquor, jewellery, accessories, FMCG and apparel, said Agarwal. “As the purchasing power increases, consumption will increase, triggering the requirement for a store in every format,” he summed up.

... contd.