National group formed to oppose Wal-Mart entry

New Delhi April 24 A group has been set up to oppose the entry of big retail giants in the country, particularly Wal-Mart.


Called the National Joint Action Committee for Retail Democracy and comprising mass organisations of traders, hawkers, farmers and trade unions, it has announced a national campaign on August 9 against the rise of corporate retail chains, both domestic and foreign.
Speaking to newspersons, Mr Wade Rathke, head of ACORN, a US-based community organisation, shared his experiences on the impact Wal-Mart has had on small traders in the US.

Mr Rathke has been involved with movements against Wal-Mart's expansion in the US and in similar movements in Mexico and South Korea.


He cited examples of the company's anti-union policies and the numerous pending lawsuits for discrimination against workers and various labour violations.


"Many communities in the US have successfully blocked Wal-Mart's entry into rural and suburban areas and that is why, even after 40 years, the company does not have a presence in over half the cities there," he said.


Meanwhile, in reply to an e-mail query from Business Line, Wal-Mart reiterated that through the joint cash-and-carry venture, the company aims to establish an efficient wholesale supply chain linking farmers and small manufacturers - who lack adequate brand power or distribution strength - directly to retailers and thereby minimise wastage.


The company has also said that it aims to establish a relationship with the small business community and help them lower costs and increase their profits. Besides, it said that currently the company sources goods worth over $600 million directly from suppliers in India.
Many of these suppliers have grown and developed their businesses and have now tied up with other major global retailers.