Impact of Organised Retailing on Unorganised Retailers: Review Paper
Year: 2025
Type: article
Abstract: The Indian retail sector has experienced profound structural transformation over the past two decades, marked by the rapid expansion of organised formats such as malls, supermarkets, and hypermarkets. Traditionally dominated by unorganised outlets—including kirana stores, provision shops, and street vendors—the sector now reflects a complex interplay between modern and traditional systems. This paper critically reviews the literature on the impact of organised retailing on unorganised retailers in India, structured around theoretical frameworks such as retail modernisation, competitive displacement, the SERVQUAL service quality model, and socio-economic embeddedness theory. Empirical studies suggest that organised retail has exerted significant competitive pressure, leading to sales declines, restructuring of business models, and a heightened sense of vulnerability among small shopkeepers. Nonetheless, unorganised retailers exhibit resilience through adaptations such as personalised service, credit provision, and relationship-based marketing. Organised formats outperform in ambience, assortment, and professional service, yet service gaps remain, particularly in personal interaction and consumer engagement. The analysis underscores that the impacts are heterogeneous, with regional, policy, and socio-cultural contexts mediating outcomes. The findings highlight trajectories of coexistence rather than complete displacement, emphasising that unorganised retailers’ embeddedness and adaptability will remain critical in shaping India’s retail future.
Author: Nirav Pandya
Institution: Bhavnagar University
Language: English
Subfield: Marketing
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7079602966
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