Wednesday, October 18, 2006

Who will win the kirana vs. supermarket battle?

CNN IBN reports that a new study by Technopak Advisors suggests that kirana’s will not be beaten down by fancy supermarkets just yet. As Indian’s are becoming addicted to shopping and the retail environment, both traditional and modern outlets will benefit and are expected to grow by 42% in the next five years. Modern retail outlets will account for 15% of that growth and grow by 75% by 2011.

While local stores located close to hypermarkets and supermarkets will be more affected than others, but there are several options for them to convert their stores into before going out of business. Chairman of KSA Technopak, Arvind Singhal says that
"Telecom retailing outlets can be put in mom and pop stores and some current retailers could become food service retailers and others could become cyber cafe owners."

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