"South India Retail & Realty Report" gives out key figures and lays out directional parameters for industry

"Organised retailers need also consider social profitability alongside company profitability," says governor of Karnataka.

"Food & Grocery segment accounts for more than 65% of the country's 50 million people currently employed in retail and sustainable growth of Indian retailing is possible only if organised retail devises a role for the 'thelawalas' and hawkers," says the study.

The Shop at Bangalore concluded on May 31 with the release of “South India Retail & Realty Report: 2015 and Beyond” by HE Sri Triloki Nath Chaturvedi, the governor of Karnataka. The report deals with the southern retail market with special focus on the food and apparel retailing segments, besides exploring the real estate market down South.

Retail is important primarily because the industry is the second largest employer of manpower, second only to agriculture – 50 million are currently engaged in this industry and the number is projected to increase to 61 million by 2010. South Indian states account for 21.5% of the country's workforce engaged in retail.

Today, when only 0.8 per cent of the Rs 743,900 crore food & grocery retail in India is organised, 1.2 per cent of the retail segment stands organised in the South. Precisely the reason why most big players, domestic as well international, chose to first touch base in the South and then expand to other regions. “Organised food & grocery retailers in the South, therefore, have an added responsibility of presenting to the country a model that absorbs the thelawala s and hawkers into its fold, rather than displacing them,” stressed GD Singh, research director, Images, while speaking at the book launch.
The observation found support from the governor when he emphasised that “Organised retailers also need to consider the social profitability aspect rather than just concentrate on company profitability.” Food & grocery, which accounts for 62% of the retail market, employs more than 65% of the workforce.

The mere size of this retail segment and the vast employment it provides in the unorganised sector, makes it mandatory that the future growth of this segment be panned out very meticulously, stressed the speakers at the book release.

South India was an early mover in setting up organised retail chains – prominent examples include Nilgiris, Nalli's, Pothy's, Saravana Stores, Viveks, Trinethra, Café Coffee Day and Subhiksha. Relatively lower real estate costs, peaceful social environment and stable governments in comparison to other regions, have helped southern organised retailers in expanding their businesses at a faster pace. Increasing job opportunities for educated youth in the South, especially in the IT/ITES sector, has led to greater disposable incomes and a ready customer base.