With all the talk of the explosive growth of the Formal Retail Market, the potential for growth in the traditional formats is neglected. Consider the role of the Cash and Carry as a Regional Distribution Centre for the Mom and Pop stores – the Kirana in India.

The Metro organisation are working hard to mould their Cash and Carry format in India and this network can serve the Kirana stores well. As the Managing Director, James Scott has stressed, “we see ourselves as dedicated to create new programmes for the kiranawallas so that they can face competition in the future.” The same idea is being developed by Vishal Mega Mart who have 108 stores in 65 cities. Their new brand strategy is to partner the Kirana stores and manage their supply chain by equipping them with new technology and providing help with visual merchandising.[i] In fact, these initiatives were launched by the Mars Group in the UK and other markets in the 1980s. A team of part time merchandisers would visit CTNs (Confectionary, Tobacco and Newspapers) outlets and manage the merchandising of impulse products. The idea was to make sure that products were always visible, accessible and grouped correctly and the impact was to reduce out-of-stocks and, increase sales whilst “professionalizing” the mom and pop format.    

 


[i] Business India (May 2008)