Shelf Destruct – Government study kicks up the Supermart vs Small Store debate

July 14th, 2008

Government study kicks up the supermart vs small store debate

At a time when efforts are being made in the West to bring back small retailers into the mainstream, the Indian government has come up with a study that lauds the role of big retail chains. It claims that the growth of supermarts in India will not harm street vendors and small shop owners, and will only spur a healthy competition in the retail sector.

“Both unorganized and organized retail are bound not only to coexist but also achieve rapid and sustained growth. Both will see a massive scaling up of their activities. In fact, the retail sector, left entirely in the unorganized and informal segment of the economy, could emerge as a major bottleneck to raising productivity in agriculture and industry,” states the study, Impact of Organized Retailing on Unorganized Sector, commissioned by the Department of Industries Planning and Promotion, commerce and industry ministry. Continue reading »