India to get its first chain of discount malls soon

SHOPPING BONANZA: Stadia Supercenter will open its stores first in north India and then expand to other parts.

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Keywords: Stadia Supercenter, Discount Malls

New Delhi: Now one need not wait for Diwali or Christmas to buy one's favourite brand at a discount. Pradeep Seth, the man behind Delhi's first mall, Ansal Plaza is now gearing up to give India its first chain of discount malls, called Stadia Supercenters.

Though standalone discount stores like Brand Factory from Biyani already exist, Stadia Supercenter will the first discount mall.

These malls will offer 50-60 per cent discount round the year on the brands they house. And the discounted model is not only for the end consumers but also the investors and the brands themselves.

"Real estate is outside the city. So it is not that heavily priced as in the city. First the investor gets the place at a discount, the retailer also gets the place at a lesser rental," Pradeep Seth, CMD of Stadia Infrastructure, says.

These malls will open along the highways and will be about 10-15 km away from the city.

While rental rates for retail space in Delhi range between Rs 250 to Rs 700 per square feet, Stadia will offer space at just Rs 40 per sq ft.

Apart from lower real estate prices, direct sourcing of products from factories will also help cut costs.

Stadia Infrastructure aims to open at least five such malls by 2012 with investment of Rs 1,000 crore.

And this will be funded by internal accruals, financial institutions and by selling about 25-30 per cent of the retail space.

"At this moment we are concentrating on northern India. Then we will slowly shift to southern India and other parts," Seth adds.

To cash in on the highway traffic, these malls will also have adjoining food complexes, amusement parks and budget hotels and that maybe enough of a reason to get cityslickers on the highway.