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Areas like Jayanagar and Koramangala, where the spending consumers are located, ensure early break-even and profitability for retail businesses.

BANGALORE, April 23

THE city's retail industry is heading to the suburbs, and in doing so, it is getting closer to the spending consumer.

Jayanagar, a leading residential area in the southern part of the city, is a case in point. The recent months saw the two branded designer jewellery labels, Tanishq and Oyzterbay, opening their exclusive stores here.

Last week, after looking for the right real estate in the city, Mr H S Kohli, Chief Operating Officer (COO) of the New Delhi-based Ebony retail chain, said, he was keen on opening his first store in Bangalore at Jayanagar.

"After checking out Jayanagar, I think I will now change my plans for Bangalore. The demographic profile of an area like Jayanagar is quite attractive for any retail store. Besides, there is no point in getting into the already crowded MG Road-Brigade Road belt,'' Mr Kohli said.

As the city expands, looking at the suburbs may help retailers like Ebony. This large format departmental store chain is foraying into Bangalore after rivals such as Shoppers' Stop and Lifestyle have already set up stores in the heart of the city. "Any retail chain will look for the first mover edge. The best thing for us now is to look at the untapped markets within the city where you can have the first mover advantage in a local area,'' Mr Kohli said.

The retailers' journey into Bangalore's suburbs took a decisive turn last year when Big Bazaar, a big box discount store, came up on Hosur road off Koramangala.

This retail chain, the first large format store to tap the consumer spending potential in the suburbs, has raked in good business.

It must be mentioned that Shoppers' Stop had plans to set up its second store in Malleshwaram, but subsequently postponed it to a later date.

The RPG group-managed food and grocery chain, Food World, has effected a cluster formation within Bangalore reaching out to most of the leading residential settlements in the city.

Coffee chains like Cafe Coffee Day, which has sprung up in the lifestyle areas of the city, has added to the spanning out retail business.

The emergence of new retailing hubs within the city provides the industry with more viable investment options.

It gives alternatives in acquiring real estate interests, which are more in tune with the likely returns on investment.

"Areas like Jayanagar and Koramangala where the spending consumers are located ensure early break even and profitability for retail businesses,'' the retail industry sources said.

As the leading real estate firms work towards finalising plans for multiplex and malls on the city's outskirts, retailing, which is increasingly getting clubbed with entertainment pursuits, is likely to remain suburb bound.

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