The Economist writes: “Foreign retailers mount an onslaught on India, and local companies fight back.”
INDIA’s retail revolution is at last getting started. At the moment 97% of retail sales are made in more than 15m tiny mom-and-pop stores, mostly of less than 500 square feet (46 square metres). But now Reliance Industries, the country’s largest business group, is to spend 250 billion rupees ($5.5 billion) on big new shops over five years, starting on November 3rd when it will open 11 convenience stores in the southern city of Hyderabad. And big foreign companies are moving in too. The government bans them from selling direct to individuals, but they have found a side door: starting wholesale and sourcing companies which supply a local retail partner. The first to do this, last month, was Australia’s Woolworths, in league with Tata, India’s second-largest firm. Tesco, from Britain, is expected to follow soon, and Wal-Mart and France’s Carrefour are also thought to be searching for a way in.