Indian Retail slow down claims another victim - a big one!!

A RIL spokesperson said in an email, "We started the mart with 1,55,000 sq ft. We have right sized to 1,00,000 sq ft. We plan to use the excess space generated for other retail ventures in the pipeline."

This statement speaks the story. This is what was stated in CNBC

Reliance had to slowdown expansion and even downsize its hypermarkets, just two years since the launch of its retail operations. In Ahmedabad, it is leasing out an entire floor to other retail players, possibly an American restaurant. The hypermarket that started out over three floors is being reduced to two, the third being leased out

Too many players entered into retail in too short a period of time. This happens time and again -businesses trying to get pie of a market that has huge growth potential subsequently creating a bubble which can then only grow as big before it bursts. Virtue of patience is lost by individuals and businesses alike. Everybody wants to have those profits right now, can't wait for few years. This includes me as well, I don't have the patience to hold on to stocks that are stagnant but have good potential in few months time.

Warren Buffet is right when he says

"The stock market is designed to transfer money from the active to the patient."

RK
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