Impact of Malls on Sales of Small Traders

Only available on StudyMode
  • Download(s) : 261
  • Published : March 9, 2013
Open Document
Text Preview
1. Introduction
The retail scenario in India is very unique in nature. The major part is in the unorganized sector, with over 12 million retail outlets of various sizes and formats. If you watch closely 96% of these retail outlets are less than 500 sq. ft. in size. The per capita retail space in India being 2 sq. ft. compared to United States figure of 16 sq. ft., India’s per capita retailing space is thus the lowest in the world with more than 9 outlets per 1000 people; India has the largest number in the world. Most of them are independent and contribute as much as 96% to total retail sales. Because of the increasing number of nuclear families, working women, greater work pressure and increased commuting time, convenience has become a priority for Indian consumers. They want everything under one roof for easy access and multiplicity of choice. This offers an excellent opportunity for organized retailers in the country who account for just 4% (and modern stores 0.5%) of the estimated US $180 billion worth of goods that are retailed in India every year. Título del segundo epígrafe (Times New Roman, 9,5 puntos negrita, estilo ‘Título 1’)

2. Objectives of study
To estimate impact of malls on sales and turnover of small shoppers. 3. Review of literature
Zenia Kotval and John R.Mullin, The Economic and Fiscal Impacts, so far as concerned malls tend to have a positive fiscal impact for the host community. Some writers have made 774
conceptual links between shopping malls semiotic messages and consumer emotions, fantacy and acting (Kowinski 1985, Zepp 1986). Because the mall is enclosed it is protected from the outside world and controlled inside.

According to Zenia Kotval and John R.Mullin, malls also provide decent second jobs or par time jobs for children spouses and senior citizens. Further they have mentioned their work about impacts and downtowns. According to them malls hurt downtowns! Local department stores, unable to compete with the mall in terms of prices and variety will inevitably close. Family owned stores will suffer and few will msurvive the transition. According to Anuradha Kalhan (2007) who have made a study in Mumbai “ only 14 percent of sample of small shoppers and hawkers has also so far been able to respond to the competitive threat of the malls”. Dionne Bunsha (2007) has highlighted in his paper, In Mumbai, where there is conflict over every inch of space, hawkers are losing the battle. In the past few years, several street vendors have been forced to vacate. The booksellers along Flora Fountain, as much a part of the landscape as the monument itself, have been evicted. The city’s trade mark vada pau stalls now function in clandestine corners ever since the Supreme Court banned cooking of food on the street.

4. Research methodology
The study has been conducted in Pune city (Maharashtra). There are around 100 malls in the city. Only four malls have been selected by random sampling method from those areas where malls have not been established in planned colonies / towns. The selected malls represent four corners of the city. From each selected mall area 50 each small shoppers (with in the radius of 1 kilometer of selected mall), has been chosen randomly for comprehensive study. Thus, 4 malls, 200 small shoppers have undergone for comprehensive study. 5. Analysis

Organized corporate retailing is poised to become the business of the decade in India. Retailing presently contributes about 10 percent of India’s gross domestic product (GDP) and 6-7 percent of employment. With some 15 million retail outlets, India has the highest retail density in the world. But only 4 percent of these outlets are more than 500 sq. ft. in size and almost all are family owned shops and establishments (Mukherjee and Patel 2005). What is particularly disquieting is the pace at which corporate retail chains are entering and expanding in the retail market, with the analysts quoted as saying that India is attempting to do in 10...
tracking img