There has been a very concerted move to increase Foreign Direct Investment (FDI) in Retail Sector in India.
The proposal was shelved for the time being by the Government following stiff resistance put up by the opposition parties.
We now know why the Retail chains are eager to come to India.
India is a virgin market and there is no reason why they should not be looking for business opportunities abroad.
The very fact that they are forced to close down in an Economy as US, shows that these Retail Chains do not pose a real threat to local farmers as the small traders in US since these sectors are thriving as usual.
Small Trade in India is unorganised and their procurement price is high as they are very small, resulting in the Customer not getting a reasonable price.
Huge chains will be able to get agood price for the Customer and the Farmers shall also be assured of volume od Business.
Instead of the profit margin being high, they shall be able to make it up volumes.
In addition quality of Service ,choice of products and very compeitive prices will result.
There is no point in resisting the move for FDI in Retal Sector.
It is upto us to get the best advantage from the troubled times of these Reail Chains.
Consider the informative blog on this.
http://indianblogger.com/malls-supermarkets-–-are-they-threats-to-indian-retail-industry/
Holdings was walloped by Wall Street and Main Street on Tuesday, follow
ing news that it would close 100 to 120 of its Sears and Kmart stores in a bid to shore up finances.
Its stock tumbled 27% to $33.38. It’s off 83% from an April 2007 high of $195.18.
Critical customers responded to the announcement by griping about messy stores and rude associates on online forums. A report issued Tuesday by Credit Suisse analyst Gary Balter said the company “effectively ask(s) customers to pay for a poorer shopping environment than available at competitors and online.”
New sales data show that Sears Holdings stumbled during the all-important holiday shopping period. Comparable-store sales were down 4.4% for Kmart and 6% for Sears for the eight-week period ended onChristmas Day, the company said.
“We can do better than this. We will do better than this,” Sears Holding CEO Lou D’Ambrosio said in an internal memo.
In addition to shuttering U.S. stores, the company plans to reduce fixed costs, improve inventory management and have more targeted pricing and promotions.
The iconic Sears and Kmart brands have been under the Sears Holdings umbrella since a 2005 merger. Sears Holdings Chairman Edward Lampert, a well-known financier who orchestrated that union, has taken much public heat about the combined companies’ financial troubles.
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