The retail revolution is supposed to be hurting the kirana, but the kirana is not your regular government organization. It wont roll over and die, it will try to make the best possible deal in the market. Like I had written before it is the Kiranas who take advantage of some of the newer retail stores bargain deals. Every time I am at Reliance, I see them buy a whole bunch of their requirements from Reliance - taking advantage of all the deals.
Friday, May 02, 2008
Recently I noticed something else - which could be a reason for their using places like Reliance Fresh more than the prices. Their mode of payment is not cash, but Sodexho coupons. Why? It shortens their credit cycle. They use the Sodexho that they are paid in and use it to exchange for goods that they buy from Reliance - so no more waiting for Sodexho reimbursement, they turn it around asap. Markets seek their own level, dont they?