4.7.08

Reliance Retail to partner Small Town Vendors

For it's foray into tier-II and tier-III markets, Reliance Retail is looking at roping in local hawkers and vendors. The company plans to set up a centralised store in each small town and give food and grocery items to hawkers and vendors, who in turn will sell in the neighbouring villages and localities.The company is looking at providing these items to local hawkers at about 20 per cent less than the mandi price. Hawkers and vendors, at present, buy the produce from middlemen and local mandis where pricing mechanism is largely opaque.
The proposed arrangement promises to end the distortion of the middle man making the most money. A vendor or hawker will need to go to the nearest Reliance outlet, procure goods, groceries or fruits and vegetables, all at a price 20 per cent less than that available at the stores and sell the products in their door to-door sale format. This can be seen as part of a series of initiatives that Reliance Retail is undertaking to dilute opposition to organised retail from small traders at the grassroots levels.

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