Reliance opens doors to 'retail revolution'

NEW DELHI: Indian giant Reliance Industries was due to open the nation's biggest superstore on Wednesday in what it called another step in its drive to unleash a "retail revolution."

The giant store in the western city of Ahmedabad, India's biggest outlet under a single roof, is the latest format to be rolled out by Reliance which launched its six-billion-dollar foray into the retail trade last November.

The opening on the 60th anniversary of the country's independence "marks the achievement of another milestone in our effort to unleash a retail revolution in India," said Reliance chairman Mukesh Ambani.

But the new store, which will carry more than 95,000 products and is one of 500 planned by 2010, comes amid growing unease about the impact of big retail operations on India's largely unorganised "mom and pop" shopping landscape.

On Tuesday, the Confederation of All India Traders demanded a parliamentary committee "look into all issues arising out of the entry of corporate retailers into retail trade and serious objections raised by traders."

"From what we've seen in other countries, these big retailers have totally destabilised local retailers," said Praveen Khandelwal, general secretary of the organisation made up of 5,000 retail trade bodies.

"They're adopting predatory pricing with the sole aim of hijacking the vast potential retail trade" estimated at around $300 billion, he told media.

Reliance's smaller format grocery stores called Reliance Fresh have already sparked protests by small vendors who say the nationwide retail venture which promises "unmatched affordability" threatens their livelihoods.

Reliance's new three-storey hypermarket covers 165,000 square feet (50,000 square metres) which store officials said was about a third larger than any rival outlet.