With the aim to combat rising competition from large format retailers (LFRs), Mumbai-based Trade Association of Information Technology (TAIT) has undertaken the task of setting up TAIT Retail Group, which will include 100 odd retailers from the region. The group will be headed by Satish Bhatija, CEO, MX Information Systems, who is also a Director in TAIT.

The body will look at ways of solving issues and grievances that are affecting the IT retailer community. Currently, over 50 retailers have already tied-up with TAIT and the association is now looking at adding around 100 channel partners to further strengthen the body.

TAIT is also in the midst of negotiating with several finance and credit card companies to extend a supporting arm to small retailers in the same manner in which they have been supporting established LFRs such as Croma and Reliance.

Satish Bhatija further mentioned, “With LFRs becoming more aggressive, vendors have started overlooking the efforts of small retailers. LFRs are posing as a big threat to us. Customers have pointed out that LFRs were offering them better shopping ambience and competitive prices, which is why they prefer buying from them. We have witnessed a 40-50 percent slump in sales in the laptop segment alone.”

Many credit card companies have tied-up with LFRs, wherein they extend discounts on various products and other monetary benefits to them. Since LFRs indulge in volume business and attract a range of customers, banks do not hesitate to extend financial benefits to them. TAIT Retail Group will hence look at tying up with similar finance and credit card companies and then pass the benefits to all its members.

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