The roll-up strategy can be very successful if you have capable management driving the ship and an industry where the synergies for consolidation make sense. Roll-ups provide greater efficiencies such as merging back office accounting, marketing and purchasing. The roll-up also provides an exit strategy for mom and pop owners who are seeking to retire in the not too distant future. With most kirana stores occupying / owning prime property, the real estate benefits could be substantial.
Keeping in mind such scenario I think its the best time for entrepreneurs to identify their own expertise and capability to capture the opportunity to hold such roll up. Integrated Kirana stores will need man-power & Technology. If such consolidation is bound to happen in future due to succession crises, one can start a venture that can outsource manpower & technology to the backend operations etc. Its a big opportunity for upcoming managers & retail industry leaders & its a right time to look into it.
Nikhil Kunwar
hmm.........a good observation dear.
ReplyDeleteI am quite hopeful that you have found some near-by store at your home.
One more idea from my side is that the Big retailer can put their money in kirana stores or buy these mom n pop store or use them as their franchisee.
So these mom n pop store will put their Brand name at face of their shop. With this way, retailers can save their cost of expansion and presence. Easily they can be everywhere but cost can be high and back-up operations are concerning factors in this.