Advantages And Disadvantages Of Retail

Retail is derived from the French word retaille which translates to a piece cut off and in the modern day is the sale to the smallest unit - the individual customer. The retail sector is currently worth 7 trillion dollars worldwide. India has the fifth largest retail sector in the world and accounts for about $833 billion of the retail sector. Various studies of the retail sector all show that in India the unorganized sector is larger than the organized sector. Almost 93 percent of all retail stores in the country still fall under the unorganized sector. Kirana stores dominate the sector with a ratio of one store per 50 individuals while there is one modern retail outlet per 1500 individuals.
India at 5.5 stores per 1000 people has the highest store to person ratio worldwide. It is the second largest source of employment after the agricultural sector in the country. However in percentage term it still lags behind the global leader , The United States which employs 20 percent of the country's population. A large part of the retail sector is comprised of food, beverages and tobacco which accounts for over 70 percent of the sector. This is down from over 73 percent in

The most important advantage kirana stores have over organized retail chains is the level of personalization they manage to achieve. Special discounts, information about new products which have entered or are about to enter the market and credit tabs are some of the advantages offered to regular customers by many kirana stores. Due to the personal touch provided by kirana stores the owners have a better understanding of consumer preferences as compared to supermarkets. Another strength of the kirana store is the fact that they deliver to regular customers regardless of the size of the order. This is a major advantage over supermarkets as they do not provide the service of home delivery unless it's a bulk