Big Bs gunning for mom-and-pop shops
DON’T BE surprised if you find high-class mom-and-pop retail shops coming up in your locality! Just be cool when you find the same in the other localities, too!
Because, by December 2007 big business houses (Big Bs) are all set to throw open a chain of high-class retailing formats.
The phenomenon which will not only bring high-class retailing to the city, but also refresh its taste to upmarket retailing stuff.
A clutch of small builders who own land or even new shopping complexes waiting to be occupied in strategic locations are being increasingly lured by the private retailers to negotiate land prices for sale of prime real estate assets for developing smaller retail formats across the city.
The prime targets for retail space at the outset are residential colonies which are far away from the city’s busy business hubs such as Hazratganj, Aminabad and Chowk catering to the entire city’s consumers.
The localities being sought after for buying prime retailing space are currently in Alambagh, Sarojini Nagar (Kanpur Road), Ashiana, Rae Bareilly Road, Kursi Road, LDA Colony (Kanpur Road), Rajajipuram, Aliganj and parts of Gomti Nagar where the retailing formats currently are either in the form of “Mom & Pop” grocery stores in the neighbourhood or shopping complexes with smaller number of grocery stores—the outlets most frequented by housewives.
While the neighbourhood grocery stores aren’t going to disappear with the opening of the smaller malls and standalone retail formats in most colonies, most private retailers planning their network of stores are focussing on delivery of products ranging from fresh vegetables to utility items at wholesale prices unheard of in most parts of the city.
“They (private retailers) are looking at huge volumes which could easily compensate for the sale of various items at wholesale prices with a precise calculation on the density of population in each residential colony to be served by the retail stores. Every strategic location which has the benefits of a larger footfall in malls or individual retail formats is being considered”, a prominent city builder informed HT Lucknow Live.
He said that there is the threat of commercial land prices skyrocketing in the city as these retail formats start showing up suddenly in several pockets of the city.
However, only those land or properties are being targetted by private retailers at the outset which have traditionally not been fully “tapped” for a retail ventures within 1 kms periphery of residential colonies, he added.
“Most land deals involving large retailers are held in utmost secrecy as nobody wants a price spiral in real estate getting out of control anywhere in the country”, commented Manish Khemka, proprietor of broking firm Investmania.