Mr.Kanchal, the president of the organisation said that establishment expenses of big retailers amount to almost 20% while it is just 4-5% for small retailers which is going to create trouble for big retail chains in the times to come.
Also, the Parliamentary Standing Committee on Commerce which was analysing the impact of big malls on small retailers and is expected to submit its report to the central government soon is trying to study the Malaysian and Polish legislations like Shopping Mall Regulation Act which aims to strike a balance between the small and large retailers.
As retailers have started facing the heat of economic slump, do you agree with the statement that "Big Retail Chains would fail in coming future"?
1 comment:
Basic yet powerful point on operating costs for big retailers. However I'm hopeful for the industry. That's because,
1. It is true that per store operating cost would be high for organize retailer, but is it true for cost/ft?
2. Organize retailer uses this extra cost for marketing, customer service and efficiency of supply chain. All have it's own benefits; long term and short term.
3. Quality and health conscious consumer would be willing to pay little extra for the same.
4. A better supply chain network by cutting middlemen and reduce wastage would help keeping basic costs lower for an organize retailer.
Let's see what happens...
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