Retailers grab lucrative realty-deals to expand

Retail chains such as Future Group, Spencer’s Retail,

Woodland among others are finding lucrative rental deals easier now compared to earlier and in favourable terms, since real estate developers are now offering to release space piled up in anticipation of foreign retailers’ entry. Home grown retailers are making the most of it.

While rentals have remained steady since the last one year, retailers say property owners now readily agree to profit or revenue sharing instead of a fixed monthly rent, or offer discount in rentals for initial few months. In recent times, retailers were finding it difficult to pay high rentals since realty developers refused to go in for a revenue sharing model but now the scenario seems to be changing keeping in mind that expansion of global retail chains such as Wal-Mart, Tesco and Carrefour are unlikely to happen anytime soon.

Spencer’s Retail plans to close 30 property deals by March 2013 to expand its hypermart store count from 25 to 70 in next three years. Woodland too plans to open 115 stores by next year to take its store count to 500.