According to a study by the Indian Council for Research on International Economic Relations (ICRIER), the traditional retail sector will retain around 84 per cent share of the market till 2013.
Around 2,000 mom-and-pop stores and 1,000 consumers across the country were surveyed for the study. The study will be submitted to the government on May 9.
One of the most important findings of the study is that mom-and-pop stores have so far been able to face the challenge thrown by the emergence of organised retail.
The report, however, said that though the profitability of the traditional stores is being affected by the impact of modern retail, none of them want to move out of this business. Even a large majority of the next generation of traditional store owners want to remain in this business.
The customers favour the existence of both organised and traditional stores as they derive value from both. Very few of those surveyed opted for one of the two formats to go to.
The study was commissioned to ICRIER last year, after the prime minister’s office (PMO) directed the commerce and industry ministry to get an assessment done on the impact of organised and big retail on the smaller mom-and-pop stores.