Overview

Changing macro economics, softening of consumer demand and increasing globalization has transformed the level playing field for retailers. Competition is severe in a highly fragmented market where no retailer enjoys a double digit market share. While the industry has grown by over 36% CAGR over the last decade, there is concern that softening of consumer demand may dampen growth thereby putting pressures on margins.

Retailers are faced with a dual challenge of improving top-line in an uneasy economy while ensuring streamlining of costs. They need to ensure increased off-take, high return on assets, faster sales growth relative to inventory growth and higher operating income growth relative to net sales. This requires retailer to adapt in a dynamic environment ensuring they track customers evolving needs and life-style changes to deliver superior customer experiences. They also need to ensure they understand and respond to competitive pressures while managing high customer retention.