In the background of high consumerism and income of the urban consumers, in recentyear there are a number of companies have

expressed their interest towards retail sector outlets. As a result numbers of shopping malls have started their operations in metro andurban areas. Pantaloon, big bazaar, Vishal Mega Mart, Reliance Fresh are the best knownexamples of retail sector outlets in India.Retailing is the interface between the producer and the individual consumer buying for personal consumption. This excludes direct interface between the manufacturer andinstitutional buyers such as the government and other bulk customers. A retailer is onewho stocks the producers goods and is involved in the act of selling it to the individualc o n s u m e r , a t a m a r g i n o f p r o f i t . A s s u c h , r e t a i l i n g i s t h e l a s t l i n k t h a t c o n n e c t s t h e individual consumer with the manufacturing and distribution chain. S o m e o f t h e k e y features of retailing include Selling directly to customers with out having any intermediaries Selling in smaller units / quantities, breaking the bulk Present in neighborhood or in the location which is quite convenient to thecustomers. Very high in numbers Recognized by their service levels Fitting any size and or locationIt is assumed that due to the entry of a number of retail outlets in the urban and semiurban areas, the mindset of the existing customers have undergone drastic changes.Besides it is also reported that the traditional retailing such an age old Grocery shopshave

directly faced competition with the organized retailing sector. In some parts of thecountry, it is reported that the traditional retails are resisting the entry of organizedshopping malls. For instance the traditional retails of Bhubaneswar with the activesupport of the consumers at large didnt allow reliance Fresh to start outlet initially.

RECENT TRENDS Retailing in India is witnessing a huge revamping exercise as can be seen in the graph India is rated the fifth most attractive emerging retail market: a potential goldmine. Estimated to be US$ 200 billion, of which organized retailing (i.e. modern trade) makesup 3 percent or US$ 6.4 billion As per a report by KPMG the annual growth of department stores is estimated at 24% Ranked second in a Global Retail Development Index of 30 developing countries drawnup by AT Kearney. RETAIL SALES IN INDIAGROWTH FACTOR FOR INDIAN ORGANIZED RETAILINDUSTRY India's economy is booming, due to so many economic reforms.the rise in the working population which is young and reduction of the unemploymentrate. pay- packets which are hefty, and having a huge package of salary package.more nuclear families in urban areasrise in the number of working womenmore disposable income and customer aspirationwestern influenced life style is adopted by all the people.growth in expenditure for luxury items increases. GROWTH OF RETAIL INDUSTRY :Growth of Retail Companies in India exhibits the boom in the

retail industry in India over the years. The increase in the purchasing power of the Indian middle classes and the

influx of the foreign investments has been encouraging in the Growth of RetailCompanies in India.Reason for the growth of retail industry isExisting Indian middle classes with an increased purchasing power Rise of upcoming business sectors like the IT and engineering firms Change in the taste and attitude of the Indians Effect of globalization Heavy influx of FDI in the retail sectors in India TYPES OF RETAIL The retail industry is divided into organized and unorganized sectors. Organized retailingr e f e r s t o t r a d i n g a c t i v i t i e s u n d e r t a k e n b y licensed retailers, that is, those who arer e g i s t e r e d f o r sales tax, income tax, etc. These include the c o r p o r a t e - b a c k e d hypermarkets and retail chains, and also the privately owned large retail businesses.Unorganized retailing, on the

other hand, refers to the traditional formats of low -costretailing, for example, the local kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc. Retailing Formats in India Malls The largest form of organized retailing today. Located m a i n l y i n m e t r o c i t i e s , i n proximity to urban outskirts. Ranges from 60,000 sq ft to 7, 00,000 sq ft and above. Theyl e n d a n i d e a l shopping experience with an amalgamation of product, s e r v i c e a n d entertainment, all under a common roof. Examples include Shoppers Stop, Vishal MegaMart, India bulls, Pantaloon. Specialty Store Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword,R P G ' s M u s i c W o r l d a n d t h e T i m e s G r o u p ' s m u s i c c h a i n P l a n e t M , a r e f o c u s i n g o n specific market segments and have established themselves strongly in their sectors. Discount Stores As the name suggests, discount stores or factory outlets, offer discounts on the MRPt h r o u g h s e l l i n g i n b u l k r e a c h i n g e c o n o m i e s o f s c a l e o r e x c e s s s t o c k l e f t o v e r a t t h e season. The product category can range from a variety of perishable/ non perishable good Department Stores Large stores ranging from 20000-50000 sq. ft, catering to a variety of consumer needs.Further classified into localized departments such as clothing, toys, home, groceries, etc.Departmental Stores are expected to take over the apparel business from exclusive brandshowrooms. Among these, the biggest success is K Raheja's Shoppers Stop, Vishal MegaMart and now has more than seven large

stores (over 30,000 sq. ft) across India and evenhas its own in store brand for clothes. Hyper Markets / Super Markets Large self service outlets, catering to varied shopper needs are termed as Supermarkets.These are located in or near residential high streets. These stores today contribute to 30%of all food & grocery organized retail sales. Super Markets can further be classified in tomini supermarkets typically 1,000 sq ft to 2,000 sq ft and large supermarkets rangingfrom of 3,500 sq ft to 5,000 sq ft. having a strong focus on food & grocery and personalsales. Convenience Stores These are relatively small stores 400-2,000 sq. feet located near residential areas. Theystock a limited range of high-turnover convenience products and are usually open for extended periods during the day, seven days a week. Prices are slightly higher due to theconvenience premium. MBOs Multi Brand outlets, also known as Category Killers, offer several brands across a single product category. These usually do well in busy market places and Metros.Berhampur is an important town in the Southern part of Orissa. Most of the businesstransactions of Southern Orissa concentrate in berhampur. It is found that the traditionalretail stores are scattered around different clusters of the city such as Bada Bazar, Vapur Bazar,Annapurna Market . In last two a couple of organized retails have entered into thecity for the purpose of grabbing the market opportunities prevailing in the city. Theorganized retails mostly include Kokata Bazar(Urban Bank road), Vishal MegaMart(Churh Road) and The World(Giri Road). In this background, present study is modest attempt to understand the impact of VishalMega mart on traditional Retailing. Vishal Mega Mart, Today Vishal Retail Limited, Flagship Company of Vishal Group, engaged in Hyper

Market storeswith an average area of 25,000 to 30,000 sq. ft. through an impressive chain of more than100 fully integrated stores in spread of more than the area of around 22, 00,000 sq. ft. in69 cities across India & has a plan to cross total retail area of 35 lakh sq. ft. in tier II andtier III cities by the end of 2009. Traditional retailing traditional retailing or we can say the unorganized retailing are the traditional formats of low-cost retailing, for example, the local kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc