Is the retail sector going to be run via government licenses? June 19, 2007
Posted by Shel in Retail.trackback
This is a step backwards in my opinion, a huge step backwards if if goes through. Some news reports are reporting that due to the pressure from opposing parties, the government might introduce a license system in the retail sector so that it can protect small unorganized retailers. Local municipal corporations will have the power to decide where large retail stores come up in the city, depending on whether small retail stores will be adversely affected or not.
I really don’t see how it will benefit the common man, as you can’t force people to shop at stores that have bad customer service, higher prices and a haphazard way of stocking and reordering merchandise. Most small retailers sell products over the listed MRP, and consumers earlier didn’t have any other choice but to pay that price, but now that there are lots of choices available, consumers will shift loyalty to stores that offer the maximum benefit, financially as well as in service and convenience.
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