India Retail News

Already industry analysts and experts are calling 2009 a write-off. Amidst a flurry of bad news that amounts to the most challenging retail environment in nearly a century, many industry giants are fighting to survive. Yet history demonstrates that investing in building key capabilities now will likely mean faster, stronger growth once the economy recovers. So what are the right priorities for retailers? Certainly, cost reduction is critical for all retailers. For healthier retailers, aggressive but prudent cost reduction can fund an investment in key capabilities. whereas a more aggressive approach to cost reduction may be appropriate for retailers facing significant profit or liquidity issues. The key for both groups is to act quickly. Retailers that delay profit improvements run the risk of creating a liquidity crisis, which can result in ruin in the current credit crunch.