'Organised Retailers Will Not Fall Under'

Any more Subhiksha-like scenarios in the system?

While I can’t comment on individual players, there’ll be restructuring and consolidation as a result of competition, consumer demand and preferences. Overall, I don’t think many organised retailers will fall under, but they will be very careful with further expansion. They won’t expand much within or outside cities or, for that matter, to the rural areas.

Which formats are under pressure?

Specialised formats for consumer durables, jewellery, sports goods and other such stores are under greater pressure. One can make a distinction between essential and high-end products—currently, the demand for high-end products is shrinking. As volumes will not come into play in reducing the cost of operations, the department stores and supermarkets may be more relevant and popular than hypermarkets.

What’s happening with Bharti and Reliance’s models?

Bharti’s model of linkage from the farm gate to the consumer will definitely be an advantage but even they may go slow. The large players will rethink expansion plans and may even close down a number of outlets.

Who’ll beat the downturn’s effects?

The big boys with deep pockets and greater efficiency will survive better. The kirana stores will do better as they deal mostly in low-end essential items. The slowdown will provide them more time to gear up for competition with organised retail.