Retailing
Retailing
(ICRIER)the unorganised retailers in the vicinity of organised retailers saw their volume of
business and profitdecline. However, the report supports that there is no employment loss in
this case. It is believed that
both the formats can co-exist. In fact, when modern trade help create new categories, the
spillover effectis helping generate more demand in kirana stores as well.
Other
studies have estimated that traditional fruit and vegetable retailers experienced a 20-
30%decline in incomes with the presence of supermarkets.According to one study by Nelson,
since2006, when most big retailers either entered the retail space or began expanding their
network, sales in local kiranas have grown in the low single digits even less thanthe GDP
growth rate, while modern trade has grown in strong double digits, though at a much lower
base.For instance, sales at modern stores grew 34% in 2006 and 29.3% in 2010. Traditional
stores couldincrease sales only 1.5% in 2006, but improved the growth rate to 6.2% last yea