The growth and transformation of retail market in India, on one side creating a better shopping experience and other side it is creating a lot of pressure on unorganised retailers. The first objective of this study is to understand the perception of small kirana shops in relation to the impact they can have and the second is find the effect on their employment with the increasing number of corporate retail chain stores in the form of organised retail stores in corresponding grocery segment. The study was carried out in the market of Indore region and responses were collected from small neighbourhood kirana shops. Multivariate statistical techniques were used to analyze the data collected with the help of a structured questionnaire The result of the study shows that small neighbourhood kirana shop owner perceived that their profit is negatively affected, their operational cost is increased to meet the higher service quality expectation of the customer but the result do not show significant negative impact on their employment due to growth of corporate retail stores. The implication of the research is that kirana shops have to implement new strategies to face the competition from retail giants and meet the customer expectations to remain profitable in the long run.
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