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Expansion of Organised Retail Pose Threat for Kirana Stores
| March 10, 2008 |  (Be the first to rate this story!) Loading ... |
Researchers of ICRIER study, commissioned by the government, have said that Kirana stores, especially those on the periphery of big super markets, will be the first ones to bear the brunt of rapid expansion of organised retail.
The report also said that kirana stores have a lead time of 10 years which they can use, with the support of the government, to innovate and be a part of the retail revolution.
“Structural changes in retail will surely start affecting a large number of small retailers at some stage, be it after one or two decades, especially when the overall size of the organised retail in food reaches about 25-30%,” said the report prepared by researchers of the International Food Policy Research Institute (IFPRI) and Michigan State University (MSU).
After getting a mandate from the commerce ministry last year to a conduct a study on ‘The Impact of Organised Retailing on the Unorganised Retail Sector’, ICRIER has sought help of Thomas Reardon and Ashok Gulati, co-directors of ‘Markets in Asia’ — a joint programme of IFPRI and MSU.
“ICRIER asked Reardon and Gulati to help research and report on the international experiences in the growth and expansion of modern retailing in developed and developing countries and the implications for India. This report is a contribution to that effort,” the IFPRI report said.
It said for evolving an inclusive model for organised retail, big stores can co-opt several kirana stores and hawkers drawn from the pool of traditional retailers and upgrade them with adequate infusion of capital and training.
Experts are of the view that the emerging structural transformation in retail trade would benefit the society as a whole, but noted that “the gains will accrue early to consumers and a little later to farmers”. To ensure that traditional retailers do not become losers in this revolution, they suggested that innovation was needed to co-opt.
News Published Under: Retail Market in India |
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