Monday, June 27, 2011

Why Indian grocers' biggest worry isn't the Walmarts


Last year, Chandan, a 60-year-old grocery store on MG Road, Pune, was revamped. It wasn't just a face-lift. A new floor was added, walk-in aisles were widened and advertising spaces carved out in strategic spots.

The results were immediate. "My monthly sales surged by 30-35% to cross Rs 13 lakh," says Manish Chandan, the 42-year-old, third-generation owner of the store. But Chandan is not popping the champagne. Instead, he is rethinking his investment.

"Sometimes, I wonder if we would have earned higher returns by parking the money in a savings account," he says. Stumped? This is the paradox of tradition retail: growing steadily by 4% a year—there are 9.8 million stores in India now—yet not generating enough revenue to keep store owners happy.

Read more of this insightful article by Kamya Jaiswalin the Economic Times

The article highlights a number of salient feature which have formed the backbone of the channel development of AaramShop.

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