Measuring Productivity of Grocery Retail Sector in Delhi and NCR

Abstract

In the year 2011, Retail food sales were estimated USD 270 billion which equates to 60% newlineof total retail sales and $ 225 per capita expenditure on food (GAIN Report, 2012). This newlineestimate shows the opportunity present in the grocery retail sector. During the past two newlinedecades, Indian retail sector has been liberalized through permitting FDI norms more newlinefavorable to retailers, like- 100 % FDI is allowed in wholesale trade, 51 % is being newlineallowed in single brand and multi brand retail trade. Many international players have newlineentered into the retail market like- Wal-Mart, Carrefour, Tesco etc. Many grocery newlineretailers have expanded their retail operation like- Reliance has expanded its retail newlineoperations from supermarket to hyper market, Bharti group easy day convenience stores newlinehas also expanded to easy hyper etc. changing mindset of consumers towards the newlineorganized grocery retailers from the local kirana stores, growing population, high brand newlineconsciousness of the youths, importance of good ambience and atmosphere of the retail newlinestores at the time of shopping are all factors leading the growth of the sector. Retailers newlineare running from pillar to post to penetrate deeper into the Indian wallet. newlineAfter having all such growth prospects and opportunities the share of organized grocery newlineretail is at only 2% which is at very miniscule level (Deloitte Report, 2013). This could newlinebe because of the intensity of the competition, as there are many players in this sector newlinedelivering similar kind of goods at competitive prices and at the same time consumers newlinemind and wallet share gets divided between these many players, location and rental newlineproblems involved in running the store etc. All such things affect the productivity performance of the grocery retail stores. newline newlineThere comes the role of productivity measurement where the efforts should be made by the retailer to have a check on the productivity, find out the factors affecting the store performance in terms of their store productivity and measured them to know the efficient and inefficient ...