Some sections of the Indian Retail are not as affected like the others and the managements are taking this as an opportunity to expand.
Samsonite which barely opened 2 or 3 stores in 2008 plans to setup at least 30 stores in 2009. Ramesh Tainwala, Director of Samsonite said,
On an average, we have managed to bring down rents by about 15-20%. There have been instances where the reduction has been as much as 50%. In some locations in Delhi, it is gathered that the correction in some areas has been as much as 80%.
Alog Gupta of India’s leading Coffee Chain Cafe Coffee Day said,
Rentals in malls would have fallen by 20-30%, while on high streets it would have fallen by 15-30%. Falling rentals are definitely helping our expansion plans and helping us enter locations where we were not present earlier.
Biba Women’s ethnic wear retailer has renegotiated its rentals in Mumbai and Delhi and is planning to set its footprint in prime areas.