My experience with Reliance Fresh is that is just another store selling their daily needs. As a resident of Bangalore, we have similar vegetable/fruit shops (HOPCOMS) run by horticulture societies. Similar to Reliance, we have "Subhiksha", "Fresh @" (Heritiage group) in the city. Though many have taken fancy to shop at these places, it has now been increasingly realised that the local hawkers, small corner shops have suffered very little. They continue to thrive albeit they have also understood what the competitive spirit really demands. The consumer has the last laugh. We, at home, do also buy vegetables/groceries from small stores and hawkers at our door step.
So to say that present vendors will be displaced seems far fetched!
