Economic slowdown is always known to happen but the timing is always a surprise to managements of companies. Slowdown in the context of retailers means managements moving towards more sensible methods of acquiring customers.
Last Sunday we had reviewed the performance of Vishal Retail Megamart. Just a while ago we have received information that the company is closing its store in Color Scape Shopping Mall, LBS Marg, Mulund (W) Mumbai – 400080 which was operated on an area of 30,867 sq.ft. Another store on Pal Link Road, Jodhpur will also be closed. The above decision is the move by retailer to shut down unviable outlets. Vishal Retail however doesn’t want to slowdown its new store openings and is dependent on Franchisees, atleast for the next couple of quarters.
Some retailers have postponed their store opening to 2010. Retailers are now looking for operational efficiencies from renegotiating Rentals to integrating their supply chain and systems across all categories. Retailers will now focus on customer experience to retain them, which should be the sole point and focus of any retail business.