Indian and Chinese retailers revise grand opening plans

Planet Retail Perspectives 20 Oct 2008:
By Manu Ghai and Yujun Qiu, Retail Analysts, Planet Retail

• Rising property prices in India are making it difficult to find land for new outlets 
• Major retailers such as Reliance are closing stores to remain profitable 
• Relentless expansion in China no longer viable in major cities due to competitive pressures

In the future, retailers likely to be more prudent with their store opening plans 
Despite growing demand for modern outlets in India and China, retailers are beginning to see that rapid expansion does not always pay off. In India, higher operating costs, resulting from rising property prices and food price inflation, are impacting retailers' expansion plans, while in China some companies are scaling back growth because of competitive pressures. Market conditions are therefore forcing companies in these two countries to look long and hard at their expansion to stay in shape for the future.

Full article at www.plantretail.net (subscription site)