Key success factors for organized retailers

Here are some of the key factors for success for organized retailers.

Location of the store: Location is the most important factor determining the success of a retail store or a chain. Selecting a wrong location and then changing it can have heavy strategic and financial implications.For instance, in the food and grocery vertical, the Indian consumer prefers a neighborhood convenience store to the international trend of an out-of-town one-stop shop.

Penetration across verticals and geographies: Growth in organised retailing will come from increased penetration in different verticals and the dimensional rise in geographical reach. Moreover, this will also diversify risks and improve loss-bearing capabilities. A retailer with a presence in several verticals and higher number of stores will be in a better position to manage slow sales in some locations.

Managing scale: This calls for synchronizing various aspects of operations: front-end, back-end, supply chain dynamics and infrastructure. Therefore, players with good execution capabilities, deep pockets and financial flexibility will be able to scale up their operations much faster.

Apart from all these, lot also depends on how you position the products / brands SKUs within your store.

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