Impact of Organized Retailing on Traditional Retailers

Abstract

An important aspect of the current economic scenario in India is the emergence of organized retail. There has been considerable growth in mganized retailing business in recent years and it is poised for much faster growth in the future. Major industrial houses have entered this area and have announced ve,y ambitious future expansion plans. Transnational corporations are also seeking to come to India and setup retail chains in collaboration with big Indian companies. However. opinions are divided on the impact of the growth of organized retail in the country. Concerns have been raised that the growth of organized retailing may have an adverse impact on retailers in the unorganized sector. It has also been argued that growth of o,ganized retailing will yield efficiencies in the supply chain, enabling better access to markets to producers (including farmers and small producer:,) and enabling higher prices, on the one hand and, lower prices to consumers, on the other. In the context of divergent views 011 the impact of organized retail, it is essential that an in-depth analytical study on the possible effects of organized retailing in India is conducted. The focus of this paper is to identify the impact uf organized retail on traditional retailers.