Impact of organized retailers on traditional markets: Implication for India

Hemalatha Jeyachandran, Dr. Haider Yasmeen


The retail sector has witnessed enormous growth in the recent years in India. It is one of the fastest growing and promising sectors in India. The Indian retail sector is highly fragmented, largely consisting of owner-managed shops in small sizes. The domestic organized retail industry is growing at a fast pace and the industry is also witnessing the entry of foreign retailers. Robust economic growth, fast-expanding middle class and mushrooming malls contribute to the retail boom in India. Competition in the retail sector is getting stiffer as many big players are experimenting and implementing different retail formats in the market. This rapid expansion of organized retailers may have both positive and negative impact on traditional retailers, wholesalers, manufacturers and suppliers. Many studies have been conducted in developed countries to understand the impact of these organized retailers on the traditional market. However, in a developing country like India, where the organized retailing is just at its initial phase of growth, the scope of conducting such studies is enormous. This review paper is therefore aimed at exploring various studies conducted across countries to understand the impact of organized retailers on the traditional retail sector. This review would facilitate researchers to build suitable hypothesis on the basis of which extensive research could be carried out in future.

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ISSN : 2251-1555