Abstract

Organized retailing is a sunrise industry in India. Many big industrial houses and international players are in the arena. The perfect competition in the market posed many challenges to retailers for better organizational performance. In this study we attempt to identify items for retail challenges (RC) and organizational performance (OP) based on strong literature support in consultation of practitioners and consultants in the field of organized non-livestock retailing (NLR). The retail challenges so selected were classified with factor analysis using principal component analysis with varimax rotation. Here, the retail challenges are classified into four categories as: strategic challenges, environmental challenges, customer challenges, and supply chain (SC) challenges. The six identified items for organizational performance are: market performance, SC competencies, stakeholder satisfaction, innovation and learning, customer satisfaction, and financial performance. A confirmatory model was tested using structural equation modeling to prove hypotheses: strategic challenges, environmental challenges, and customer challenges influence SC challenges and all the challenges affect organizational performance. The data were collected from organized non-livestock retail players operating in north India. All the results are validated using rigorous statistical analysis.

Highlights

  • Retailing is the set of activities that markets products or services to the final consumers for their personal or household use

  • The retail challenges are classified into four categories as: strategic challenges, environmental challenges, customer challenges, and supply chain (SC) challenges

  • The technique of factor analysis has been applied to classify factors for retail challenges and technique of structural equation modeling has been applied to test hypotheses

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Summary

Introduction

Retailing is the set of activities that markets products or services to the final consumers for their personal or household use. In India this industry is identified as ‘karyana’ stores These karyana stores have been in use since ages. The major retail players in this industry are: Reliance Retail, RPG Retail, The Tata Group, K Raheja Corporation, Piramyd Retail, Nilgiris’, Subhiksha Trading Limited, Trinethra, Vishal Group, and BPCL etc. These players have collaborated with the national and international players like Wal-Mart, Tesco, and Metro etc. During interaction with the organized NLR the need was identified to understand the retail challenges, and organizational performance. In this paper an attempt has been made to identify the retail challenges and their effect on organizational performance. The technique of factor analysis has been applied to classify factors for retail challenges and technique of structural equation modeling has been applied to test hypotheses

Retail Challenges
Organizational Performance
Database and Methodology
Scale Development
Scale Refinement
Factor Analysis for Retail Challenges
Manpower Management
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