India perhaps has the highest retail density in the world. Economies of scale drive the retail sector towards rapid growth in terms of size of outlets and dominance in geographical and product markets, posing challenges for preservation of genuine competition. Growth in size also has consequences for manufacturers, wholesalers and dealers in the supply chain who face a loss of alternative marketing/retail outlets as monopolies emerge. The growth of large format retail raises serious issues for the urban environment and town planning in dense and rapidly urbanising countries like India. The need for intelligent regulation, therefore, cannot be overemphasised.
Kalhan, A., & Franz, M. (2009). Regulation of retail: Comparative experience. Economic and Political Weekly, 44(32), 56–64.