The question of whether opening up the market for foreign direct investment
in retail businesses will be a hindrance to the survival of the small unorganized retail
outlets is still a matter of debate. Based on a primary survey data from the National
Capital Region and Chennai in South India this study shows that the organized
corporate retail businesses (OCRB) did displace some small unorganized retail outlets
(SURO). Drawing on the location theory, it is argued that the displaced SURO relocated
themselves in fringe areas of the cities and earned more profits. This indeed is an
efficient strategic decision making by the SURO.
Keywords: India, location theory, organized corporate retail businesses, small
unorganized retail outlets, strategic decision making, urbanization.
