IMPACT OF ORGANIZED RETAILING: AN ANALYTICAL DISCOURSE

Abstract

The retail sector in India is rapidly expanding and modernizing keeping pace with the economic growth of the country. The overall retail sector is expected to grow at a compounded rate of 15% amounting to INR 47 trillion in 2016-17. Some of the key drivers to the retail consumption in India are increasing urbanization, increasing disposable incomes, favorable demographics and nuclearisation of families. Organized retail is estimated to grow at a CAGR of 24% and attain a 10.2% share of total retail by 2016-17. There have been continuous debates on the impact of the growth of organized retail on traditional retailers. In favor of organized retailing it has been argued that growth of organized retailing, will yield efficiencies in the supply chain, enabling better access to markets, to producers (including farmers and small producers) and lower prices to consumers. In the context of divergent views on the impact of organized retail, this analytical study has been conducted to assess the impact of the organized retail on the different aspects of the economy and suggest certain strategies for marketers and policymakers to catalyze and project the benefits of Organized Retailing.