Impact of supermarkets on small retailers in Indian suburb

Modern organized Retail is growing at a rapid pace in India but 96% of Indian retail trade is unorganized. In this situation, the impact of this retail boom on small retailers has to be studied. The research presented here builds a picture of the changing face of retail taking place in Tirunelveli. The study is aimed at knowing the impact of supermarkets on the sales and profit volume of small retailers. Another objective of the study is to know the impact of supermarkets on the employment opportunities in unorganized retail industry. Moreover, opinion of small retailers is also sought, to identify the reason for the growth of supermarkets in the study area.

Tirunelveli Municipal Corporation is taken up for the study to identify the impact of organized retail Malls i.e. supermarkets on unorganized small retailers. Tirunelveli Municipal Corporation is an upcoming and the fastest growing place in Tamil Nadu. Convenience Sampling Method has been adopted and 109 unorganized small retail concerns of various formats are selected for the study. Retailers with a floor space of less than 500 sq. feet and located within a distance of 10 km from supermarkets alone are taken for study.

The present study indicates that supermarkets inflicted an adverse impact on unorganized retail outlets of various formats in targeted Indian suburb area. Moreover, due to the growth of supermarkets there is a loss of employment in the small retail ventures. Opinion of small retailers also identifies the main reason for the growth of supermarkets.

A very useful source in information and review of scenario should help small retailers across the state of Tamil Nadu to face big giants more aggressively and do better in the years to come. This paper identifies the data required for the guidance of small retailers.