A year and a half ago I had predicted that with a little effort, the Indian kirana stores can beat the MNCs, and big supermarkets black and blue.
Basically the big retailers have to:
1. Organized retail pay a much higher rent than the local shop/hawker
2. The salary in organized retail is much higher than the daily wage paid by the kirana store.
3. Its hard to believe that any retail can be more efficient than HUL and P&G in managing inventory and supply chain.
Today I read this news in telegraph which says that on a annual sales of 1070 crore, Spencer (RPG group) made a staggering loss of 289 crore.
Subhiksha went out of business and almost every other retail store is cutting back on its expansion plan.
Reading this post, you might feel that I am against organized retail. However personally I prefer malls and organized retail because of better retail experience.
Ankur Aggarwal
sree
Sandip Chaudhuri
vbr
shobhendrasrivastava
