High Rentals Hit Retail Expansion Plans

The expansion plans of retail companies have taken a hit due to the rising real estate rentals.
Talking to media persons, K Dasaratharaman, president (specialty retail), Spencer Retail, the retail arm of the RPG group, maintained that the real estate prices are a critical aspect while choosing the location of new stores.”
Dasaratharaman said that while they were planning to open another 50 specialty stores by this fiscal end, the rentals would be a critical element, while choosing the new locations.
Dasaratharaman added, “We definitely want to add another 15 ‘Book and Beyond’ store and 40 Music world Store by this fiscal end but the location of the upcoming stores would be decided keeping the real estate prices in mind. We are in talks with the real estate developers for opening the new stores, but it would be too early to comment about the location of the next store”.
K Dasaratharaman was in Chandigarh to announce the opening of a new vertical of the Spencer retail “Book and Beyond”. This is the sixth outlet of ‘Books and Beyond’, specialty store by the RPG retail group.
Commenting on the new store opened at IT Park, Dasaratharaman said that the store would offer wide selection of reading options and entire gamut of art and stationary related merchandise for home and office use.
The store with a collection of around 35,000 books and magazines would be a part of the initiative to make brands accessible to all book lovers in the city.
The store, besides housing music store for entertainment seeker, would also store academic text book, exclusive Punjabi literature section books on religion and spirituality.

One Comment

  1. Posted August 14, 2008 at 3:32 am | Permalink

    The commercial real estate market across major cities in India saw a slow performance in the second quarter of 2008. This has forced real estate developers to cut commercial rentals by around 10-15 per cent across India. Mumbai, the commercial capital, witnessed stagnant rental values, while Delhi saw a strong correction after the IT/ITeS industry, the largest consumers of commercial real estate, deferred their expansion plans on fears of a global meltdown.ET on June 17 had reported that commercial rentals across India have started to fall.Noida witnessed the highest vacancy rate of 15 per cent. The supply mismatch in the IT/SEZ segment was reflected through rentals which witnessed a correction in the quarter. The total supply for Mumbai in the second quarter was 4.09 million sq.ft with IT/ITeS specific supply estimated to be 40% of the total. The city recorded a demand of 1 million sq.ft largely driven by absorption with fresh pre-commitments taking a backseat resulting in an overall vacancy of 5 per cent in the quarter. Thus the developers had no option but to cut rentals.For more view- realtydigest.blogspot.com

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