With some parts of the retail sector also being opened up to foreign direct investment, this industry looks set to boom for another decade.
According to a Merrill Lynch study, the boom in the organised retail sector is already having spin-off effects on mall construction with around 200 malls, with a combined retail space of 25 million square feet, under construction across India.
Factors like the average age of the Indian population being just 24 years, growing disposable income, emergence of shopping malls and changing lifestyle patterns have fuelled strong growth in this sector.
Existing listed retail companies have not been immune to these developments. Pantaloon Retail, the favourite retail stock of punters has seen an appreciation of a massive 72.83 per cent from Rs 748.70 to Rs 1,294.00 since January 3, 2005 till June 10, 2005.
By comparison, the benchmark BSE Sensex is up only 1.53 per cent during this period from 6,679.20 to 6,781.99.
The second biggest gainer in the retail space is Robinson Worldwide Trade, which has seen its stock zoom 50.45 per cent from Rs 144.50 to Rs 217.40.
The third company in the retail space is Shoppers' Stop, which came out with its public issue in May 2005. It listed at a 56.55 per cent premium to its issue price of Rs 238 at Rs 372.60 on May 23.
It has since appreciated a further 4.68 per cent till June 10 to Rs 390.05.