The primary reasons for growth in the retail industry are due to the demographics, the rise in consumer incomes, real estate developments which includes the emergence of new shopping malls and the emergence of better sourcing options. These factors have leveraged the retail industry, but it also requires policy-making, a cohesive approach, and governance.
1. Classifying retail constituents: The scope and size of operations can classify numerous retail components. The retail sector can also be bifurcated into three segments which would comprise of small stores up to a particular size and a small and medium-scale grouping that would cover those in the urban areas and large scale sector which consist of retailers who have more than one store and also includes the online business. This classification would help in catering to the needs of each segment.
2. Legal framework: After having a clear picture of retail, it is essential to consider employee protection, taxations and legislation, which comes with industry status. Retailers can access institutional credit easily as financial institutions can be provided with industry guidelines concerning lending. This process can help smallest of shop owners to dream of growth and expansion. Industry status can also help companies to smoothen the process of requiring licenses and permissions for opening a store. Franchising is an essential aspect for the growth of retail.
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3. Skills and Development: Offering education and abilities pertaining to retail has grown prominent over the past few years. Initiatives can be taken to, especially for those who are working in the smaller shops. Some national-level skilling for this particular segment of the workforce will have a large positive effect.
4. Computerized Billing: Government must look forward to subsidy schemes for the small shopkeepers, which could be a low-cost tablet PC, for billing purpose as they are keen to adopt the digital system and implement a system-based billing mechanism.
5. Information and Data: It’s advisable to create a national registry of products maintained by manufacturers wherein they talk about every detail of every product they make. Retailers can also have access to this data, and they can even manage the same as it would be cost-effective because of the scale and volume of the usage. Computerized billing helps in maintaining the data at everyone’s fingertips and is a massive boon to the retail and manufacturing sector.
6. Social security: This is a significant drawback for small shopkeeper. A scheme which benefits small shopkeepers with medical and life cover at nominal cost can have a lasting impact on these people and livelihood.