Truckers strike: Traders feel the pinch as retail stocks get thin

Mayank Shah, category head, Parle Products, one of the largest biscuit makers in India, said dispatches from its factories to depots and warehouses were down 50-60 per cent.

Truckers Strike : The nationwide strike of transporters, which began last week, is now beginning to impact supplies at traditional as well as modern trade outlets, especially in the north and west. The fallout of the supply crunch would be felt in a day or two, a cross-spectrum of retailers told Business Standard. Sales could be affected, they added, a situation that both manufacturers and retail trade are unhappy about.

“While Big Bazaar is well stocked for now, there could be a problem if this strike continues,” Kishore Biyani, chief executive officer, Future Group, said. “Not only have the big truckers called off operations (as part of the strike), our assessment is that even the smaller guys at the local level are not supplying any products. This feeder network is critical for retail,” he said.

Neville Noronha, managing director and chief executive officer, Avenue Supermarts, which runs the D’mart chain of outlets, said, “It is impacting our supplies severely. Though it is not reflecting in our stores yet, it will begin to show shortly.”

Wholesalers and retailers stock products for 10-15 days, since replenishment happens quickly. In some cases, trucks and tempos supplying essential items come in daily at stores, depending on how fast a category moves, a Mumbai-based distributor said. “In such an event, tempos not coming for days can impact sales straightaway. We are already seeing it for some packaged food categories such as biscuits,” he said.

Mayank Shah, category head, Parle Products, one of the largest biscuit makers in India, said dispatches from its factories to depots and warehouses were down 50-60 per cent, as much of this was outsourced to trucking majors. “Even the next level of transportation from warehouses to stockists, super-stockists and distributors is not happening. Naturally, this will impact supplies to the last-mile retailer – whether modern trade or traditional trade,” he said.

Ajay Gupta, managing director, Capital Foods, the maker of the Ching’s Secret brand of noodles, said he was feeling the impact of the transporters’ strike at two levels.

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