Small retailers not to disappear, says Rangarajan
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Chairman of the Prime Minister's Economic Advisory Council C. Rangarajan on Friday sought to allay apprehensions that neighbourhood kirana stores would disappear with increase in modern and organised retail.
"They (small retailers) will continue to remain. In fact, the international experience shows that even in advanced countries where there are large scale department stores operating, the 'mom and pop' stores have not disappeared. They continue to exist," he said at a seminar on retailing here.
He said kirana stores would survive and can become part of modern retail by organising themselves and getting assimilated into the organised sector.
"These kirana stores and street hawkers can also become part of the modern retail chain... if they can be assimilated into organised retail, organise themselves under their banner through franchisees, upgrade through infusion of capital, better training," he added.
He, however, said once the share of overall modern retail in food reaches about 25 to 30 per cent, " it is bound to affect the kirana traders first and then the small and marginal traders".
The organised retail in India at present is less than five per cent, as per the industry estimates. Later, he told the media that large retail outlets probably will come in major cities and Tier-II cities.
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