What went wrong with Subhiksha?
Submitted by reltok on Sun, 2009-09-13 00:13
Subhiksha was all over the media for the right reasons, the model was great, there was demand for a player in the organised retail market ... and all of it seemed to go its way... and then the bubble burst... what went wrong with Subhiksha?
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Subhiksha
Submitted by alok on Sun, 2009-09-13 01:48.with over 1500+ outlets they spread themselves too thin,and the strategy adopted by them in the larger cities where one could find multiple outlets in the same vicinity, a strategy that worked very well for starbucks led to the doom of subhiksha
Subhiksha
Submitted by Susheel on Sun, 2009-09-13 20:52.Yes the fast expansion did have a role to play in the demise of Subhiksha. Not a bad ploy though considering they were the only fresh format retailer who could make an impact in the neighbourhood format. What really hurt was the unplanned expansion where in instead of focusing on per-store profitability the retailer took the broad picture and entered into tie-ups for low-rental locations. Slowly the fact that they could not rotate stock fast enough to pay vendors sparked off the Working Capital crunch and added to that poor redistribution from DC to stores further hampered walk-in's.