Patna, Dec. 3: Once bitten, but not scared to face the challenge again.
The traders in the state capital are ready to take on global players such as Walmart if the Centre finally allows FDI in the multi-retail sector. After all, they have witnessed the outlet-opening spree by Indian retail giants and survived the onslaught.
“Opening of outlets by Indian retail giants such as Big Bazaar and Vishal Mega Mart did have an adverse impact on the overall sales of the kirana shops situated near the mega stores. But the corner shops did not have to down their shutters. If global players such as Walmart, Carrefour and Tesco are at all allowed to set up stores, our business will be down but not out,” a trader tried to put up a brave face.
The Telegraph visited several shops located in the vicinity of Big Bazaar and Vishal Mega Mart, the two biggest retail stores in the capital, to feel the shop-owners’ pulse and also to make it out if they were apprehensive of the possible entry by the global giants. But none of them is willing to say what will be the impact if Walmart and its likes enter the city. “Leave it to time,” another trader said.
Most of the traders, who have their shops near Big Bazaar in the Rajiv Nagar, Indrapuri and Kurji Mor areas, admitted that their sales volume went down by 20 per cent ever since the Indian retail giants started setting up stores. “Our sales suffered for a month when the Big Bazaar store came up. But once the initial excitement among the customers was gone, the situation became normal. We have our fixed customers and they will not visit malls to purchase everyday items. We have heard that retail outlets of international repute will come up in future, but we are not scared,” Abhishek Kumar, a grocery shop owner of Rajiv Nagar, told The Telegraph.
Harishanker, who owns a grocery shop at Grihasthi in Indrapuri, said: “The arrival of Big Bazaar had a 25 per cent impact on my sales. But I survived. Now, if Walmart opens its outlet in Patna, it cannot devour 100 per cent of the market. It may have another 25 per cent impact on our sales. But the rest of the market will be open.” He added that Big Bazaar and Vishal Mega Mart attract the affluent and those belonging to the upper middle class. “Walmart will also target the same segment. But the middle and lower-income groups would continue to buy from corner shops, provided they sell quality products at a competitive price,” he added.
Roben Francis, who has been running a general store for 20 years a few metres away from the mall, said: “The retail chain had its impact on my shop. But there are shops in the area that are still doing well. If players such as Walmart come to the city, it will not have much impact on our shops because these big stores will be located on the outskirts. People can visit such mega stores once a month. But for their daily requirements, they will have to come to us.”
But not everybody feels the same. Rakesh Kapoor, proprietor of a popular departmental store at Dak Bungalow near Vishal Mega Mart on Frazer Road, is sceptical about the prospects of his business once big names such as Walmart or Carrefour arrive. “We will not be able to compete with these MNCs. It’s beyond doubt that customers will be benefited because these companies purchase products in bulk directly from manufacturers. As a result, they can keep huge margins even after providing the customers with lucrative incentives. When Big Bazaar or Vishal came to the city, our business saw a 20 per cent decline. If the global players come in future, there will be a major adverse impact on our business,” he added.
The Union cabinet had on November 24 decided to allow FDI in the retail segment, paving the way for global retail chains to open stores in 53 cities across the country. Patna is the only city in the state, which qualifies the criteria to have 10 lakh or more population for getting such stores.
