If anti-retail protestors have their way, Reliance Retail may have to rethink strategy in its home state of Maharashtra very soon.
Mass rally planned in Mumbai on Oct 10
NEW DELHI: If anti-retail protestors have their way, Reliance Retail may have to rethink strategy in its home state of Maharashtra very soon.
A consortium, consisting of FDI Watch, All India Kisan Sabha, Bhartiya Mazdoor Union and the Confederation of Indian Traders (CIT), is planning a mass rally in Mumbai on October 10.
District-wise protests thereafter are also being planned.
Their demand? Close down big retail, since mom-and-pop stores get affected.
But why are the protestors targeting only Reliance and not others like Subhiksha, Spencers or Big Bazaar?
While CIT president Praveen Khandelwal says Reliance is being targeted because it has made the largest investment in organised retail, FDI Watch’s Dharmendra Kumar says that even Bharti and Wal-Mart are being targeted.
“Anyone who is large is a threat to small retailers……we should have a national retail policy before these companies are allowed to function,” Kumar said.
The protestors are claiming wide-ranging political support, from the Left to as well as the Bharatiya Janata Party (BJP).
So, will Reliance Retail, which has already shut down its fresh fruit and vegetable outlets (Reliance Fresh) across Uttar Pradesh and Orissa, adopt the same strategy in Maharashtra, too?
Company officials are unwilling to comment, but sources said that Reliance may be playing a wait-and-watch game, even in Uttar Pradesh.
It could be waiting for a two-month deadline set by the Lucknow district magistrate to lapse before deciding its future strategy.
The DM’s order is believed to have asked Reliance Fresh stores to close down till October 21, and in the interim, the state government is conducting a detailed study on the issue.
Not just outlets, Reliance is also reducing the number of sourcing centres at the mandi level across various northern states. As of now, all 20 Fresh stores in UP and the very first in Orissa have been closed.
Reliance Retail may face protest in state as well
Of the other formats, one store each of digital products and the hypermarket format are operational in UP and Gujarat, respectively.
The second hypermart is scheduled to come up in Jamnagar and the third in Mumbai, but it remains to be seen whether this expansion road map is followed.
While Reliance stores are facing consumer opposition, it’s business as usual for other organised retailers.
Future Group’s supermarket format, Big Bazaar, has been operating its stores across the country as usual.
Future Group CEO Kishore Biyani told DNA Money “Most protests have been against Farm Fresh (of Bharti) produce. Big Bazaar does only 1-2% of its business from farm produce……We have 70 stores already and further expansion is going on as planned.”
Ditto for Subhiksha, Spencer’s, Birla’s More and Trinethra stores and Nigiris in the South.
Technopak’s Arvind Singhal says some study should be conducted to figure out if modern retail is actually killing small businesses before such drastic action can be taken.
According to an ICRIER study, large retailers have no adverse impact on mom & pop stores.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}