In 2006, the Indian retail market was estimated at US$350 billion. The market was largely unorganized and dominated small and individually owned businesses. Organized retailing accounted for only 3% of the market, but by 2010, the share was expected to reach over 10%. Modern and organized retail channels such as hypermarkets, supermarkets, department stores, discount stores, etc. were sprouting in a big way. Retailing in grocery accounted for more than three-quarters of overall retailing sales. In 2005, non-grocery retailing grew by 14% in sales value compared to 2004. Department stores were the frontrunners in growth in non-grocery retailing and the number of department stores had grown by 24% per year since 1999-2000. Department stores were largely frequented by the high-income and the upper-middle segment. Specialty retailing was also increasing (see Exhibit 8 )