So, organised retail is good for one and all

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New Delhi, May 26 : much as 4%, while the saving is higher at 8% at discount stores and a low of 2% at hypermarkets. Households with a monthly income of up to Rs 10,000 save the highest amount at 10%.

Intermediaries reported an increase of 7.5% in their turnover in the last one year. However, there were some decline in turnover in the fruit, vegetables and apparel segment and the decline in the profit in vegetable and apparel. About 37% of the intermediaries reported an adverse impact of organised retail while 59% indicated no adverse impact. Around 19% also reported a shift in their business strategy as a response to retail chains such as improved services to customers, new product lines and increased credit sales.

With regard to future plans, 66% said that there were prepared to invest and expand business and remain competitive while 89% wanted to remain in the same business. Only 3% thought of changing it.

The report reveals that farmers benefit significantly by selling directly to retail chains. A study conducted on farmers selling cauliflower directly to retail chains saw an average price realisation of 25% more than their proceeds from sales to regulated government mandis. Profit realisation for farmers selling directly to retail chains is about 60% higher than that received from selling in the mandis. The study further points that the difference is even larger when the amount charged by the commission agent in the mandi is taken into account.