Decoding Retail Realities: Traditional Retailers' Outlook on Sales Erosion to Modern Retail Economy


The traditional retail landscape in Indian metropolises has changed significantly in the last several decades, mostly due to the modern retail economy's growth, including corporate chain stores and e-commerce sites. Small merchants have been gradually displaced as a result of this paradigm shift, which has been exacerbated by changed Foreign Direct Investment (FDI) laws that have brought significant money into the Indian market, as well as a rise in consumer disposable income and the wave of digitalization. This study explores small merchants' consequences as they contend with the growing power of organized retail and e-commerce behemoths. Despite earlier research studies mostly focusing on the organized trade's exponential rise due to changing customer behavior, this paper fills this gap by illuminating the traditional retailer’s perspective towards the contemporary retail landscape and highlighting the threats to small businesses with a traditional focus. The study uses empirical analysis using tools like SPSS and SEM models to examine the initial troubles faced by small retailers of fast-moving consumer goods (FMCG), highlighting the difficulties they face in competing with the powerful forces of deep discounting, massive sales events, and evolving consumer tastes. This exploratory research analyzed the undermining factors like utilitarian and hedonic, purchasing patterns, menaces, hindrances, pecuniary and location as reasons for the retail paradigm from traditional to modern trade. The outcome emphasized that utilitarian factors like ambience, experience, status, variety, payment modes, single-store distribution and assortment are the drivers behind the explosion of traditional trade by the modern trade in retail economy.


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How to Cite
BHAGAT, Shikha; RAVI, Shilpa Sarvani; SANKAR, Mallika. Decoding Retail Realities: Traditional Retailers' Outlook on Sales Erosion to Modern Retail Economy. Theoretical and Practical Research in Economic Fields, [S.l.], v. 15, n. 1, p. 17 - 30, mar. 2024. ISSN 2068-7710. Available at: <>. Date accessed: 20 apr. 2024. doi: