Dire Straits Retailing !

If the traffic on the roads is any indication to go by then its surely a sign that things are surely heating up in India , in terms of jobs and business losses .Life has surely changed in a matter of 12 months , we have moved from India shining or say blooming to India waning !

These are surely Dire Strait retailing times . Speak to any one in the retail segment the biggest concern is that of their jobs in the first place , there are sparks flying at Reliance retail ( layoffs galore ) , Subhiksha ( no salaries /closing down ) , and other retailers are all looking at the extra hands in a microscopic way.People costs which is a size able cost, is on the hot seat .

Product Mix on the shelf : retailers are playing the high private label sales game ,to shore up margins ,so don't be surprised if you find more of Spencer jams , Bigbazaar sauces on the shelves ,its another matter whether the suppliers are getting paid for these too !

Credit : The Retailers are not paying up on time to vendors , brands/suppliers also in their great urge to dispose of stocks are willing to look at credit extension , or asking for a volume commitment .The way the picture is shaping up ,not really sure when would we come out of this situation .

Expansion and contraction : all non profitable stores would wind up or at least be in a stock clearance mode ie these stores would be part of the contraction mode , very few except cash rich retailers are looking at expansion mode in this era as the realty rates are looking reasonable now !

Unseasonal Sale : Its surely a sign of times that most apparel brands ( Arrow , Indignation , Dockers etc ) have all gone on Sale in January 09, that's a unplanned move must have been triggered by the high inventory , as the normal sale comes in by march /april .

When the economy was good ,like the dire straits song , retailers were singing "Money for Nothing " things have really changed and is surely hitting this wafer thin margin industry HARD, watch this blog for more updates !