Thursday, May 12, 2005

Action in Retail?

Its all happening out there, in retail. There are rumours of Walmart entering into India with Mahindra. There was talk of one of the Ambanis entering on their own. Tesco is waiting in the wings. Meanwhile Businessworld has reported that Tatas, after Westside would pick up stake in RPGs Foodworld. ITC is planning rural malls under the Chaupal Sagar name ( one is already operational). Metro is already trying out its model in wholesale.

Whoever comes in will have to take on Big Bazaar (a big hit in Bangalore and Hyderabad), Food Bazaar, Giants, Margin Free market (Kerala et al) in the markets they are active in. Thats cavalry including the cooperative guys like Apna Bazaar, Sahakari Bhandar in their respective markets again. The Infantry will be made up by the hundreds and thousands of small traders, wholesalers, grocers and friendly neighbhourhood stores. Of course when we talk of Walmarts and Tescos and Ambanis, the scale is something entirely different, but the battle will be an interesting one. Book your seats for a ringside view of the action.

1 comment:

Anonymous said...

Will size the winner, not neccessarily. Ford and GM are big..but facing stiff resistance and are hammered by japnese and korean car companies.

Swaminathan Ankleshwar had a good article written(couldn't find the link) on how things have changed in the fortune 500 - he looks for companies that have been battered.

Will Retail be the same? Walmart's quarterly profits of 2.5bn USD is more than annual revenues of most Indian companies (infy turnvoer wuld be around 1bn $ mark)

Size matters....guess not..!!