Slowdown Worries Supermarket Promoters

The global financial crisis combined with liquidity crunch in the Indian market hast hit the Retail sector now. Foodland Fresh and Spinach supermarket retail stores have closed some outlets and are on the verge of closing more stores. The Wadhawans of Spinach are also putting their expansion plans on hold and are more likely to consolidate current operations.

Mr. Ivan , VP of Foodland Fresh said,

We are taking a hard look at the neighborhood food and grocery stores in Maharashtra and economics of these stores. We are not opening stores at the same pace as other retailers are. We will consolidate our operations and grow organically.

Spinach which planned to operate 250 stores by 2008 so far has managed to run mere 58 outlets. spread across Mumbai, Thane, Nashik, Kolhapur and Kolkata. Their were rumors about salary being not paid to employees. So there is no doubt that the company will go slow on expansion now.

Spencers and Big Bazaar complained about the fall of INR against USD which is making their imports costlier. The companies are planning to pass on the cost to consumers as they are already operating on thin margins.