Introduction

After the agricultural sector, the Indian retail is the 2nd largest contributor to our GDP
(approximately 16% )

Thus it plays a very pivotal role in defining the Indian economy. The retail sector comprises
of two sub sectors. They are the unorganized retail and the organized retail. The organized
retails consists of all super market and hyper markets chains like D mart and big bazaar that
comes under the purview of the government and pays taxes. The unorganized retail includes
the mom and pop stores, family shops, small kiosks, wholesale shops which do not come
under government’s purview. In India, organized retail makes up just 7-10% of the total share
and the rest is dominated by unorganized retail.

The following reasons explain the dominance of the unorganized retail in the country

1. Home delivery is their forte. Small brick and mortar stores or corner side kiosks stores
provide home delivery of the customers purchases which most of the people staying
in the vicinity use. Such facilities are given not taking into consideration the price
amount and quantity of purchase

2. Even today credit is something that we do not see much in an organized retail. Well,
there exists the system of credit cards. But the flexibility and reliability of the credit
amenities provided by the unorganized retail is very wide. Middle class and lower
middle class people who cannot afford to but items on cash daily can avail this
scheme to the fullest

3. These stores are located amidst a colony of households or complexes where a lot of
residential people are found. So, the shopkeeper finds the market near to him Indian
and the buyers find the shopkeeper near. In this way, proximity of the both is assured.