India’s retail sector was estimated to have annual sales of $500
billion in 2011 out of which 90%is from family run shops. Organised retail on
the other hand accounts to 10% of the market share but is growing rapidly at
about 20-25% a year.
I decided to focus on a grocery shop, how it functions and
how it gears up to meet the daily demands.
Shop and its position: This grocery shop lies in one densely
populated residential area in Trichy. The shop named “Jaba stores” started to function 14 years back when this region was
thronging. This shop is a tiny 10*10 structure which holds a variety of items within it. It is well placed as the nearest departmental store is three
kilometres away and most of the people in this area depend on this stores on a
daily basis. This shop has a small storage area adjacent to it. Home delivery is done for all the customers who maintain an account with the shop.
Network and Function: Jaba stores opens at 5.30 in the morning and
vegetables are the main source of business in the early hours of the day. These
vegetables are bought in bulk from GANDHI Market – the premier vegetable market
in Trichy which is open 24/7. The grocer leaves at 4.30 am in the morning
to pick vegetables from the wholesale market. “The prices are slightly high due to the transportation involved but
the quality of the products will be good” says Mr. Jabaraj, the owner.
Book binding is being outsourced to a nearby Xerox shop and
two days is the fixed time allotted for the binding.
Biscuits and other eatables are being stocked every 15 days. This shop also permits local small scale manufacturers to place their products
on a separate rack. Snacks are the main business from these manufacturers. This
shop is open till 10 in the night. Beverages, milk and butter are stored and are
available most of the time. Ice creams have been scraped as there was not much
response. All items are available on MRP including those from the refrigerator. This shop remains closed on Sundays.
Boosters available: Other than grocery, the shop also has a PCO attached. It also provides book binding, stationary and some small range of sports accessories. Since there are two schools in the closest proximity, these add on also provide a strong base for the shop to stay in business and run successfully.
The retail industry is slowly being absorbed by the giants. This shop is also feeling the heat due to the presence of larger players. Allowing FDI into this industry might provide 10 million jobs but will destroy
the livelihood of 45 million others who already suffer from giants’
invasion into retail market.
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