This refers to ‘Has organised retail lost the plot?’, February 11/‘Subhiksha and the Indian retail story’, February 12. The kind of investments and expansion that organised Indian retailers here was attempting was unprecedented. The problem is that big Indian retailers were doing too much, too soon.
The reason why they remain unsure as to which format works best for them has little to do with the current economic slowdown. The fact is that customers prefer dealing with a kirana store where they can get a decent price, some choice and a lot of personalised service.
Another significant reason, as pointed out in the articles, is the high operating costs of the big retailers as well as their inability to get good logistics in place.
The other issue, which has not been addressed in the articles, is the issue of the personal touch. In the case of kirana shops, it is the store owner that you deal with while, in the case of big retailers, it is their employees.
The hype over the big retailers is now history, and it is time the kirana owners spent the next few years to modernise their operations and improve the looks of their shops.
Suresh Patidar, Indore