Abstract

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.