Thursday, August 30, 2007

Reliance Retail closes shops in West Bengal

Reliance Retail has announced the temporary closure of it retail outlets in the state of West Bengal.

The decision has come close on the heals of the decision of the Mayawati government in Uttar Pradesh to forcing all players in the organized retail arena to down their shutters.

Both the above decision have been support with the same reason.

In both cases the decision makers have submitted to the protests and angry demonstrations by the local traders and business community which have been led by the people's representatives. Many a times, these demonstrations have generally been followed by violence and destruction.

For many years, the policy makers of our country have gone to great lengths to promote a culture of self employment through setting up small stores - retail outlets - which are now referred to as the mom-and-dad stores by the players of the organized sector.

The announcements made by the organized retail players as they publicized their plans to launch a series of stores and malls across the country has spread a wave of uncertainity amongst the owners of these mom-and-dad storeowners, who feel their livelihood is being threatened.

Friday, August 24, 2007

Mayawati Bans Retail Outlets of Organized Sector

It is for the first time that has taken a political decision against the outlets of retail sector players.

Mayawati, the firebrand Chief Minister of Uttar Pradesh, has ordered the closure of all retail outlets in the category of organized retail in the state. These include shops of Reliance Fresh which has functional outlets in Lucknow with other stores coming up in Varanasi and other places in the state.

The leader of the Uttar Pradesh government issued the closure orders citing the law and order situation in the state as the reason. A group of local shop keepers led by a member of parliament of the opposition Samajwadi Party ransacked some outlets in Lucknow. There have been reports of protests against the up coming stores in the other cities also.

The CM has said that the ban of these retail outlets is a temporary one and will continue until the law and order situation does not improve.

Meanwhile, she has announced the constitution of an 5 expert committee under the chairmanship of the Cabinet Secretary of UP. The committee comprises of Principal Secretaries from different departments. The committee has been asked to go into all aspects of the organized retailing and the effect that it can have on the tradition mom-n-pop stores in the state.