Indian Retailers Bled Dry: Unveiling the Shelf's Hidden Cost

A alarming 91% of organized retail stores in India are hemorrhaging money due to inadequate shelf management, finds a report by Vector Consulting Group. Titled 'The Ticking Shelf: The Overlooked Economics of Store Performance,' the study points to revenue leakages directly linked to poor shelf handling strategies.

Despite market growth, 28% to 40% of these stores struggle with profitability. This conundrum arises from failing to treat shelf space as a crucial asset, the report suggests. Surprisingly, only 9% of retailers employ data-driven shelf throughput in daily operations, causing persistent economic issues despite an expanding market.

The accumulation of outdated inventory further aggravates these financial woes. Almost half of the inventory in electronics and a quarter in apparel sits unsold, impeding new product launches. Retailers' preference for bulk buying paradoxically results in surplus, revealing a critical need for swift, strategic inventory management.