Retail Recce

The past few weeks US newspapers have been full of news about a dismal holiday season for retailers in the US. There are news galore of retailers doing distress sales, filing for chapter 11 protection et al. Now we all have heard about the decoupling and India having a strong domestic demand and Retail being a sunrise sector and there being room for everyone and all that.

So on one lazy weekend in the last week of December i did a small recce of the retailers in Vashi. Started my reccee from Dmart. Had heard about this retail chain but was visiting an outlet for the first time. First Impressions - a no nonsense, no frills retailer targeting the masses. It was full of people (which is not an uncommon site in Malls in India, infact in most public places in India!)balancing their shopping bags! DMart has a very Apna Bazaar like feel, if you have seen one, except its more organised and professional.

Feeling good i moved to a Reliance Fresh outlet. Coming from a Dmart it looked Fresh and Colourful. Though what was missing were the people! The only people in it were the employees! Same story at the 'More' by Aditya Birla retail. Next i went to a Foodbazaar. More people than the earlier two but thinner than the usual hustle and bustle. Slow and down so far.
Next destination was Subhikha. This was quick, i just had to pass by it. The store has been shut! Enough of small empty or closed boxes (stores) i thought... i decided to visit the Big Box retailers and moved to HyperCity. Excellent store, excellent merchandise, excellent layout..empty ailes! More Hype than customers.

I stepped out and moved to the last store on my list. And then i knew where the crowds from all the earlier stores had vanished...offcourse to the Great Indian Shopping Festival at the Big Bazaar! (picture Biyani as the pied piper luring away all the customers!:) Call it another marketing gimmick, call it an air conditioned market or call him a bania! At the end of the day, He Sells.Period.

Though this time the Great Indian Shopping Festival was not half as great as the earlier campaigns. Slow and down for sure.
The excesses of the party are showing. During the good time everyone and his uncle, infact anyone, with deep pockets and grand visions was jumping into retail and was busy rolling out stores, launching multiple formats, making announcements..
But as Warren Buffet puts it
"Its only when the tide goes out, you learn whos been swimming naked!"..we'll know soon:)