Millions of mom and pop stores across the country are utterly opposed to FDI in multi- brand retail, claiming it will hurt them and threaten their very survival. Take Mr Vinod Bakshi, 43, owner of a small family run store in Jangpura Extension, a middle class neighbourhood in South Delhi, who says, “The Government isn't thinking of the Indian shopkeepers — who is going to protect us? Modern trade will undercut us in price, we will lose business.”
But if one looks at how these kirana stores are doing, even as glitzy modern trade open up right next door to them, they don't seem to be doing badly at all. On the contrary, it has been no cakewalk for Reliance Retail and Spencer's in several residential colonies, in places even forced to shut down due to high overheads, and not enough footfalls.
Take Mayur Vihar in East Delhi. Three years ago when Reliance Retail opened shop in Star City Mall in the area, nearby kirana shops made a hue and cry. A few months ago Mr Rajiv Singhal of Mediways Grocery store told
At Ramakrishna store, a very small grocery shop that stocks specialised south Indian food and personal care items, at all hours of the day, a crowd can be found in front of the store jostling to catch the eye of the shop attendants. Even when a Spencer's outlet opened right opposite Ramakrishna, the crowds never thinned and its loyal customers would rather prefer to wait in front of the pokey shop than visit the fancier store opposite. Today, the Spencer's outlet has shut shop while Ramakrishna store continues to thrive.
Mr Krishna Kumar, the owner of a store in Bhuleshwar in Mumbai feels helpless. “The universal law is always that the big fish will eat the small fish and we will suffer the same fate. We have no option as such except that all of us small traders can come together and order in bulk from the big companies who seem to be favouring the big retailers.
Talk to FMCG players and they emphasise how the mom and pop stores are equally important for them as much as modern trade. Coca Cola India President and CEO, Mr Atul Singh, in a recent interview talked about how Coke depends equally on both kiranas as well as modern trade and how the cola major is investing in training initiatives for mom and pop stores. Basmati rice company Best Foods Business Director, Dr Aayushman Gupta, says how for them all the channels - mom and pop stores as well as modern retailers and wholesalers are important.