The Indian retail major Future Group announced that it has curtailed its retail space expansion plans by almost half as the markets bend down further under the burden of recession.

Kishore Biyani, CEO of Future Group, said that the plan was to add another 4 million square feet in the retail business. However, they have downsized the expansion plan to 2.5 million square feet. The funding of this expansion strategy would e a mix of internal accruals, debt and equity. This expansion plan is worth Rs 300-400 crore which is to be invested through the internal accruals.

The Future Group had also entered into two joint ventures with Alpha Airport UK for airport retail space and with Etam, the French clothing brand. The quiet exit of both is expected, with the reduced retail space.

With a successful retail group like Future Group, a sudden change of plans for expansion just makes the aftermath of economic slowdown evident in the Indian markets as well. Retail industry has been badly hit in the US and in other parts of the world. India so far has maintained itself; however, pressure is slowly building up on the Indian retail sector as well.