The threat of organised retail is not a new worry for small shopkeepers, who have already faced and emerged winners in their war with the shopping malls.
The threat of organised retail is not a new worry for small shopkeepers, who have already faced and emerged winners in their war with the shopping malls. What actually came to the rescue of the small retailers is the fact that organised retail stands at just 4% of the total market. In fact, while employing ingenious trade practices may have saved them from the earlier churn, it may not as easy in case of foreign direct investment (FDI) in retail this time round.
“Small shops, which responded to the entry of malls with offers of after-sales service and home deliveries of groceries, had till now only the big retailers to contend with. This translates to less than 500 outlets in the country. But FDI will completely destroy us,” said Viren Shah of the Federation of Retail Traders Welfare Association.
Citing the changes he has made in his business practices, KR Madan, owner of a garment shop in Dadar, said, “I have moved to flexible pricing for my products. Owing to the additional discounts and the goodwill I have earned in the past, people still come to my shop.”
Rajendar N, who manages his brother-in-law’s Shree Muthu Laxmi Stores in Andheri, said the shop that has been with the family for 40 years is doing steady business. But ask him about the FDI plans for the retail sector, and he looks a little worried. Showing his union letter announcing the strike, Rajendar said, “I will close down my shop if other shops in the area shut down. Our family has been in this business for a long time, and I believe we will survive. After those malls came up, I started offering facilities like monthly credit and free home delivery. But, I am not sure of the future,” said Rajendar.
Nitin Gala, whose family has owned Shah Popatlal Kirana and Provision Store in Santa Cruz for 50 years now, is similarly uncertain of the future. Champak Jain, whose sells kitchen and home appliances at Mazgaon, said the entry of foreign retailers will spell the death of small retailers.
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