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Annual Review

Determinants of retail format viability

This chapter analyses the key determinants that reveal the viability of any retail format. Following points are covered in the chapter:

  • The analysis of key retail format reveals that some formats may be viable on one aspect while the same advantage may be withered away on the other front. The success for the viability of modern retail format therefore lies in maintaining an optimum mix of all indicators.
  • The few key determinants that can be generalized for assessing the retail viability are average number of footfalls, sales per sq ft, supply chain management, dependence on private labels, technological up gradation, repeat sales through loyalty programs and advertising & sales promotion activities.

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