Post-Mortem Analysis – What went wrong with Organized Retail

A sluggish economy coupled with a slowdown in consumer discretionary spending has resulted in muting retail industry growth. [Not all have turned around like Biyani’s Future Group]Retail cost structures and business models are going through the scanner. Some of the critical areas under purview are as follows.

Flaws in Business Model: Business Models for Modern Trade are weak being skewed towards low margin / high working capital which translates into their ROE’s being marginally above their cost of capital in good times and below their cost of capital in bad times. Retailers have incurred high expansion costs (more…)

1 45 46 47 48 49 123