India Retail News.

It is well known fact that no Government in India want to put the Kirana [Small neighborhood grocery stores] out of business. In a situation where Food Bazaar, Reliance Fresh, Spencers, Subhiksha, More For You retail, etc are competing with Kiranas, Vishal retail has chalked out a strategy to embrace the same. Here is a case study which our analyst has conducted about Vishal Retail with Kiranas.

• Vishal Retail will takeover the supply chain of Kirana stores and provide them with technology, new practices, visual merchandising skill and special promotional schemes on offer in Vishal Megamart
• Vishal will offer a minimum guarantee to all Kirana stores
• The partnership will help Kiranas survive the onslaught of organized retail
• Vishal hopes to build a strong goodwill with these Kiranwalas. However, the going will not be so easy as Kiranas in cities like Bangalore and Kolkata are already flocking to Metro Cash'n'Carry.

Vishal however thinks its a win-win situation as it can expand fast under this franchise model and take on Future Group, Reliance, Bharti-Wal-Mart. The deal will spare Vishal Retail of the pain of acquiring real estate, dealing with abnormally high attrition rates and pilferage in the store. Looking at it in another way, Vishal wants to enter the Cash'N'Carry format like Costco and Sams Club by servicing Kiranas. Its good that atleast someone is thinking out of the box in the heard mentality of Indian retailers :-)

Labels: Vishal-Cash-Carry-Format