The Gazetteers Department

During the sixty years or so a marked change has taken place in the volume, direction and composition of retail trade in the district. The factors that have contributed to this change are the improved means of transport, increase in population, growth of towns and cities, etc. As a result, a number of retail shops dealing in various essential commodities of daily use have come up in the urban as well as in the rural areas of the district in place of the few retail shops and periodic markets and village fairs which dominated the retail trade in the past. These new retail shops deal in various goods such as grocery, cloth, pan-bidi, etc., on a large scale. The growth of these retail shops is more marked in urban and semi-urban places than in the rural parts of the district. The population of towns of Bhandara, Gondia, Amgaon, Sakoli, Tumsar and Tirora has gone up during the last half a century and consequently the number of retail shops dealing in various commodities has also increased.

Retail shops provide a link between the wholesale trader and the consumer, and thus play a prominent role in the commercial sector of the rural as well as urban economy. These shops are mainly located in the central localities of the (towns and big villages, such as main bazarpeth, State Transport or Railway station and the like and cater to the needs of their respective localities. Their stock in trade is limited but the turnover is rapid. At many of the wholesale trade centres there is not much of a distinction between wholesale and retail business as a few wholesalers do retail trade also. The retail traders usually buy their needs from outside merchants or producers particularly in the cloth and electrical and hardware trade. The business is mainly conducted on cash basis. However, the practice of maintaining running account for customers is not uncommon.

Gondia and Bhandara are the two leading commercial centres in the district. Amgaon, Tumsar, Pauni, Sakoli, Lakhani and Sawangi are next in importance in respect of population, trade and industrial activity.

Following are some of the observations regarding retail trade in the district based on the information collected in the survey of some of the places mentioned above.

Grocery, pan-bidi, cloth, coal and wood, and vegetable shops are numerous, and are evenly distributed in almost all the localities and wards. Bicycle being a convenient mode of transport, a number of bicycle shops (doing hire and repair business) are found in all the main commercial centres. Shops dealing in medicines, stationery, footwear, general merchandise, sweetmeats, fruits, etc., which do not feature in day to day life are not found universally in the small towns. Still other kinds of shops dealing in articles of seasonal or less regular demand, e.g., jewellery, utensils, glassware, hardware, building material, etc., are seen to be concentrated in particular localities, while location of shops selling mutton and fish in a few places is mainly due to the municipal regulations.

The retail shops are not found in large number in remote villages because of the limited demand from the villagers. These shops generally do brisk trade during the season extending from October to June. The peak season is reached during religious and social festivities. The value of the stock-in-trade of these shops depends on the daily turnover of the business and varies considerably from a couple of hundred rupees to scores of thousands in case of a distant village shop and a shop located in a busy town.

The retail traders usually purchase the goods from the wholesalers in large towns like Gondia, Bhandara and Lakhani but some of the retailers have direct contracts with the district merchants especially for the purchase of cloth, medicines, electrical appliances, drugs, hardware, etc. Retail sales are usually on cash basis but in certain remote villages the barter system still prevails. In certain cases, a number of shopkeepers extend credit facilities to their customers.

Pattern of Retail Shops Distribution: The general dispersion of retail shops exhibits certain peculiar features. Shops catering to the needs of day to day life like grain, grocery, pan and bidis, cloth and hosiery, coal, wood and fuel, fruits and vegetables are fairly distributed in all the rural as well as urban localities in the district. Shops dealing in books and stationery, footwear, sweetmeats, drugs and medicines are found mainly in urban areas. Besides, other shops dealing in metal utensils, potteries, glassware, hardware, perfumes and building material have their own particular clientele and hence they are mainly found in certain localities in Bhandara, Gondia, Lakhani and a few other places.

Grocery Shops: The grocery shops dominate the retail trade in respect of their number and total turnover in the district. The shops in this category are evenly distributed in rural as well as in urban area and a large number of grocers are found in every town or village. They sell cereals, pulses, gur, sugar, ghee, spices, tea, coffee, groundnut oil, coconut oil, hydrogenated oils, soaps. toilet articles, pencils, tobacco, bidi, confectionery, etc., and other grocery articles of daily use. The stock-in-trade of individual shops varies in value by a wide range from Rs. 100 to over a lakh of rupees depending upon the urban or rural character and size of the shop. A majority of the shops are, however, small with a stock worth about Rs. 200 to Rs. 1,000. The grocery articles are generally bought at the wholesale trade centres of the district, while a few shopkeepers have direct connections with the outside merchants. In very few shops servants are found employed for handling and weighing commodities. The bigger shopkeepers sometimes employ clerks and accountants for maintaining account books.

Some of the grocers are found to be selling stationery and cutlery goods and patent medicines against common complaints. The grocery business in urban sector is thus of a more varied character. The bigger grocers at Gondia, Bhandara, Lakhani, Pauni and Tumsar procure the goods from local drug stores or from Nagpur and Gondia. The shopkeepers in villages procure their stock-in-trade from the dealers in towns in the district.

Cloth, Readymade Clothes and Hosiery: The cloth shops deal in all kinds of textiles, such as, cotton, woollen, silk and nylon. However, cotton goods are still in great demand in the rural areas of the district where modern textiles have not made their appearance as they have in urban areas. Shirtings, coatings, saris, dhotis, chaddars, shawls, etc., are kept for sale in these shops. In the towns of Bhandara and Gondia readymade fabrics are in great demand. The old types of Banarasi shaloos and Paithanis are not currently popular. They seem to be replaced by Bangalore silk, Kanjiwaram silk and other fabrics.

The bulk of the cloth is imported by the dealers from Bombay. Ahmedabad, Madras, Kanpur, Malegaon and Nagpur whereas hosiery goods are brought from Ludhiana, Delhi, Jullunder and Kanpur.

At urban centres, such as, Gondia, Bhandara, Lakhani and Tumsar shops specialising in the sale of hosiery and readymade clothes are found. In rural centres, however, cloth shops sell these goods also. Gondia is the biggest cloth market in the district followed by Bhandara. The value of the stock-in-trade generally varies between Rs. 500 and Rs. 20,000. However, the shops in towns stock goods worth from Rs. 10,000 to over a lakh of rupees. Big shops employ salesmen and clerks. As in the case of other shops the business is generally slack during rainy season. There is a heavy rush during festivities and the marriage season. The business still largely runs on credit basis in towns like Gondia and Bhandara, whereas in the rural areas it seems a tradition in almost all shops to attract the customers regularly by offering them easy credit facilities. The net profit in this business is found to vary between 6 and 12 per cent.

Medicines and Drugs: With the growing health consciousness and the greater availability of medical facilities a number of shops of this category have come up. However, in remoter parts of the district which abound in thick forests people are found to be using herbs which are available in plenty. Almost every town and some larger villages have a drug and medical store. These shops deal in a variety allopathic, ayurvedic and other foreign and indigenous medicines.

The bulk of the medicines are either purchased from Bombay, Nagpur and Calcutta or through the agents of the various pharmaceutical firms in the district. The manufacturers or their agents provide various facilities to purchase on a large-scale whereas in certain cases the retailers acquire their needs only on commission basis. The rates of commission vary from 5 per cent to 20 per cent. The net profit for a retailer is reported to be about 7 to 12 per cent. The capital investment in this business varies from Rs. 10,000 to over a lakh of rupees.

Bicycle Shops: Shops of this category are found almost throughout Bhandara district as it is a convenient means of transport, and is within the reach of the common man. There are a number of shops selling bicycles in the important towns of the district, viz., Gondia, Bhandara, Sakoli, Lakhani, Tumsar, Pauni and Amgaon. These shopkeepers have direct connections with the producer companies or their agents in Bombay, Nagpur and elsewhere from whom purchases are made. The wholesalers in big towns generally receive 10 per cent commission directly from the companies concerned.

Fruits and Vegetables: The perishable nature of the goods sold and the general absence of cold storage facilities restrict the size of the shops dealing in fruits and vegetables. But still the shops find good business in big towns like Gondia, Bhandara, Sakoli and Lakhani where a large number of shops dealing in fruits are established. The stock is obtained from the adjoining rural areas. The type of fruits and vegetables sold depends upon the seasons in which they are grown. Amongst others the Nagpur oranges are in great demand in the district.

Hardware and Building Material: With the general increase in the building activities and town planning schemes, the number of shops in this category appear to be concentrated in urban centres such as Gondia, Bhandara, Navegaon and Sakoli. These shops deal in beams, iron sheets, chains, nails, bolts, screws, cast iron articles, buckets, pipes, pins, colour paints, cement, etc., and a number of other articles required for construction works. Of the stock-in-trade, tools are brought from Jullunder, colour paints, pipes, nails and general hardware from Bombay and Nagpur, chains and nails from Delhi, cast iron from Agra and beams, buckets and iron sheets from Calcutta and Bombay. A bulk of these merchandise is brought by railways. The annual turnover of these shops ranges between Rs. 30,000 and Rs. 70,000. These shops supply materials to Government also.

Stationery and Cutlery: With the spread of education and the growth of literacy and educational institutions in the district, stationery and cutlery shops have come up in large number in the urban area as also in big villages to meet the increasing needs of school and college-going pupils. There are big stationery and cutlery stores in Gondia, Bhandara and Lakhani. These shops sell toilet articles, bangles, hosiery, pencils, inks, nibs, fountain-pens, cutlery and provision goods, presentation articles, etc. Stationery articles are brought from Bombay and Nagpur, and sometimes from Delhi, Madras and Calcutta; paper from Titaghar, and cutlery and provision goods from Bombay. The small shopkeepers generally purchase the articles at Gondia and Bhandara from the wholesale traders. The stock-in-trade of these shops varies from Rs. 500 to Rs. 50,000. The margin of profits varies from 8 to 10 per cent. The business generally records its peak sales at the time when the educational institutions reopen after the vacation.

Electrical Goods and Appliances: Trade in electrical goods and appliances is restricted to towns and larger (big) villages of the district. The electrification of some of the rural areas has led to an increase in the number of general electrical shops. The demand for radio-sets, electric fans and irons, fluorescent tubes and other accessories has increased considerably in recent times. Many of the shops provide facilities for repairing of old appliances also.

The total capital investment of the shops in this category varies from Rs. 5,000 to Rs. 20,000. Besides the owner, an average shop provides employment to one or two other workers to keep accounts or transact business.

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