Wednesday, April 02, 2008

Effect of Increase in Organised Retail

Subhiksha, Reliance Retail, Foodland, BigBazar,More,Hypercity and etc... I think most of us have heard all this names. ....................Then there is this common question Do this big organized retailers effect the local Kirana stores(Mom and Pop stores).

They are saying that retail is booming these days..... To be precise organized retail is booming these days........
But every retailer be it Subhiksa,Reliance, Birla, Bharti, Future, Rahejas to name a few are following different strategy for their outlet......... Some are using Big Box stores while some are using Small Box stores.................
Stores like More and Subhiksha uses small real estate to setup their stores.......... Even inside they use all the space efefctively to display their items............. No lavishness is used................... Even the employees are not much as compared to Reliance,BiBazar and Hypercity..................They have less cash counters...........

My point here is, we always debated that stores like Wal-mart will not effect small kirana stores since they will be located at the outskirts of the city............Also stores like Bigbazar cannit be setup in residence areas, they have to be setup at some Malls or independently where they have huge space away from residential areas..............But as more and more small box are coming up, the threat for Kirana stores is more.

Take for example our area, earleir ppl used to buy from the Kirana stores which 2 minutes walk away....... Some Gujarati families even bought from distant shops, which they have relations since years........They just booked some items, on monthly or fortnightly basis, and the delivery was done within a day..............But now we have two near by small box organized retail store being set up..............I have seen ppl really switching to these stores..........Since they are small stores they can be set up in a society where other shops are there............Probably they can combine two shops for their stores..............

So we have to just wait and watch to really see the effect of organized retail, as it has already has enterd our or our parents lives

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