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.
Thursday, August 30, 2007
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.
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.
Tuesday, June 19, 2007
A twist in the retail story
There has been a new development in the Indian Retail Onslaught Scenario.
The Government of India has come up with a scheme to introduce licencing for large retail players planning to open retail outlets for the sale of food and grocery items.
The plan, as it appears, is that anyone wanting to open a retail outlet to sell food and grocery items - including grains, fruits, vegetables, edible oils etc. with a space of 10,000 square feet or more will have to procure a licence from the local urban administrative body - the Municipal Corporation or its equivalent.
It may be recollected that the Reliance Fresh outlets in Ranchi, Indore faced stiff opposition from the local sabjiwalas (vegetable vendors) recently. Considering the shop size limit of 10,000 sqft it seems that outlets like Reliance Fresh, that are already operational in some towns, may not come under its perview as they occupy of much smaller premises.
It remains to be seen how much this proposal will effect the retail ventures of the big guys, especially Reliance and Bharti - both of whom have been preparing in a big way to open a chain of retail outlets in the country. Their outlets are being planned with sizes ranging from 50,000 sqft to 1.5 lakh sqft of floor space.
Many of the industry bigwigs are raising eye-brows at the very thought of licencing. The past experience of the licence regime have not been very good and a lot of apprehension creeps in with the very thought of it being reintroduced.
The Government of India has come up with a scheme to introduce licencing for large retail players planning to open retail outlets for the sale of food and grocery items.
The plan, as it appears, is that anyone wanting to open a retail outlet to sell food and grocery items - including grains, fruits, vegetables, edible oils etc. with a space of 10,000 square feet or more will have to procure a licence from the local urban administrative body - the Municipal Corporation or its equivalent.
It may be recollected that the Reliance Fresh outlets in Ranchi, Indore faced stiff opposition from the local sabjiwalas (vegetable vendors) recently. Considering the shop size limit of 10,000 sqft it seems that outlets like Reliance Fresh, that are already operational in some towns, may not come under its perview as they occupy of much smaller premises.
It remains to be seen how much this proposal will effect the retail ventures of the big guys, especially Reliance and Bharti - both of whom have been preparing in a big way to open a chain of retail outlets in the country. Their outlets are being planned with sizes ranging from 50,000 sqft to 1.5 lakh sqft of floor space.
Many of the industry bigwigs are raising eye-brows at the very thought of licencing. The past experience of the licence regime have not been very good and a lot of apprehension creeps in with the very thought of it being reintroduced.
Tuesday, May 15, 2007
The ugly side gets uglier
Rajesh Gupta was very quick in pointing out the unrest in a couple of other cities in India - see comment in previous post.
The protest that first started at Ranchi against the retail outlet of Reliance Fresh has spread to Indore and Raipur. In fact, if I am not mistaken, the retail outlet against which the vegetable vendors of Indore are protesting has not yet opened.
It is all a reaction to the wide-spread publicity that the new retail outlets will sell the goods cheaper than the regular street-side sabjiwala. The vegetable vendors are scared that the huge discounted price that will be offered at these new retail outlets will be so much that their sales will be affected to the large extent. So much that they might not be able to make their day-to-day livelihood.
It appears that the news of protest in Ranchi and in Indore has inspired the vendors in Raipur to come out to the streets. Here no major new retail outlet is yet proposed or announced. The sabjiwalas of Raipur were protesting outside an already established retail outlet.
I only hope that a peaceful solution can be found, wherein both the involved parties can survive and prosper.
The protest that first started at Ranchi against the retail outlet of Reliance Fresh has spread to Indore and Raipur. In fact, if I am not mistaken, the retail outlet against which the vegetable vendors of Indore are protesting has not yet opened.
It is all a reaction to the wide-spread publicity that the new retail outlets will sell the goods cheaper than the regular street-side sabjiwala. The vegetable vendors are scared that the huge discounted price that will be offered at these new retail outlets will be so much that their sales will be affected to the large extent. So much that they might not be able to make their day-to-day livelihood.
It appears that the news of protest in Ranchi and in Indore has inspired the vendors in Raipur to come out to the streets. Here no major new retail outlet is yet proposed or announced. The sabjiwalas of Raipur were protesting outside an already established retail outlet.
I only hope that a peaceful solution can be found, wherein both the involved parties can survive and prosper.
Monday, May 14, 2007
The ugly side of the retail onslaught
The opening of the retail outleft of Reliance - Reliance Fresh - had to face the brunt of the local vegetable vendors at Ranchi.
News sources say that the vegetable vendors of the town gathered outside the Reliance Fresh outlet and started should slogans and throwing stones. They even damaged the glass panes and decor of the shop. The outraged people were asking Reliance to concentrate on their other businesses. Their main protest was that why is such a big business house trying to sell vegetables and deprive them of their only livelihood.
Till now the focus of this blog has been the effect the influx of the large business houses into the retail foray have on the millions of mom-n-dad stores across the length and breadth of this big country. This is a reaction from the tiny shop-keepers.
The vegetable vendors are generally tiny shop-keepers who don't even have shops. Most vegetable vendors squat by the street-side to sell their wares. They can be seen on all busy commercial and residential areas, where they spread a small plastic sheet on the ground and display their goods on it. They generally buy in the morning from the mandi and try to sell it off by the end of the day.
Obviously the retail onslaught is not going be easy. In proceeding on this track, the big business houses are treading on unchartered territory and there is no saying what kind of resistance or support they may face along the way.
News sources say that the vegetable vendors of the town gathered outside the Reliance Fresh outlet and started should slogans and throwing stones. They even damaged the glass panes and decor of the shop. The outraged people were asking Reliance to concentrate on their other businesses. Their main protest was that why is such a big business house trying to sell vegetables and deprive them of their only livelihood.
Till now the focus of this blog has been the effect the influx of the large business houses into the retail foray have on the millions of mom-n-dad stores across the length and breadth of this big country. This is a reaction from the tiny shop-keepers.
The vegetable vendors are generally tiny shop-keepers who don't even have shops. Most vegetable vendors squat by the street-side to sell their wares. They can be seen on all busy commercial and residential areas, where they spread a small plastic sheet on the ground and display their goods on it. They generally buy in the morning from the mandi and try to sell it off by the end of the day.
Obviously the retail onslaught is not going be easy. In proceeding on this track, the big business houses are treading on unchartered territory and there is no saying what kind of resistance or support they may face along the way.
Subscribe to:
Posts (Atom)