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Diagnosing Impact of Malls on Small Shops

In: Social Issues

Submitted By raphael1993
Words 3606
Pages 15
Delhi Business Review X Vol. 9, No. 1 (January - June 2008)


Kumar Singh* Reetesh K umar Singh* Aditya Prakash Tripathi**


RGANIZED retail sector has witnessed a CAGR of around 35 per cent over the past five years and currently contributing around 10 per cent to the country’s GDP & eight percent of the employment. The Retail Sector is seeing investments of up to Rs. 6000 crore by the 20 prominent retail players. On the other hand (A report by Govt. of India in 2004 by the centre for policy alternatives entitled FDI in India’s retail sector: ‘More bad than good’ stated that) retailing is “probably the primary form of disguised unemployment, underemployment in the country. India has 35 towns each with a population of over one million. If Wal-Mart were to open an average Wal-Mart store in each of these cities and they reached the average Wal-Mart performance per store, we are looking at a turnover of over Rs. 80, 330 million ($1.82 billion) with only 10,195 employees. Extrapolating this with the average trend in India, it would mean displacing about 4,32,000 persons. If large retailers were to obtain 20 per cent of the retail trade, ‘this would mean a turnover of Rs. 800 billion ($ 18 billion) at current market price. And of course, would mean an employment of just 43,540 persons displacing meanly eight million persons employed in the unorganized retail sector. Understanding the importance of the issue, the present study is aimed to investigate the impact of Malls on small shops and Impact of organized retailing upon sales performance, employment generation and loss of social interest with the emergence of organized retailing with special reference to Delhi and NCR. Key Words: Retail Sector, Malls, Small Shops.


The Indian retail industry,…...

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