Profit Analysis in Indian Retailing with Special
Reference to Reliance Retail Value Stores in Ranchi
Shubhashish Kerketta
Sukanta Chandra Swain
Abstract
The purpose of this paper is profit analysis in Indian
retailing with special reference to reliance retail
value stores in Ranchi through sales analysis, footfall
conversion analysis, average bill value and shrink &
dump. In India retail industry is in its nascent stage.
With new entrants into the market, the industry is going
to rise and the competition is going to increase. Profit
of any organization depends on the amount of sales. The
sales can be increased by either increasing the
footfalls i.e. attracting new customers, or, by
increasing the footfall conversion rate i.e. making it
best possible for each customer who enters the store to
buy something and add to the sale. We all know that
retaining a customer or persuading him/her to purchase
is much more cost effective than to elicit a new one.
Thus, a survey was conducted on 150 valued customers of
three Reliance Retail Value Stores in Ranchi, to find
out the reasons for the gap between footfall, and its
conversion rate, so that the sales may be improved and
thus the profitability at the least possible cost. The
survey reveals various reasons for the gap such as lower
assortment of products, absence of loose staples, poor
service at billing counters etc., which if taken into
account would definitely increase the footfall
conversion rate and thus the profit. On the basis of the
findings of this survey, if the concerned authority
works upon to annihilate the loopholes, the sales will
definitely be improved and profitability can be
maintained at a reasonable height.
JEL. Classification: L81; E51; E5.
Keywords: Sales Analysis, Footfall Conversion Analysis, Average Bill Value, Shrink & Dump, Reliance Retail Value Stores
