Retail in Asia

In Markets

India’s retailers find profit swallowed by size and sales

Aggressive expansion in a difficult economic environment and delays in foreign investment are proving costly for the retailers. Spencer’s Retail, part of the Sanjiv Goenka group, had looked to break-even targets by the second quarter of 2012, only to revise it to December 2013.

Spencer’s is not the only company which has fallen behind its break-even target. Saddled with high overhead costs and low margins in a slowing economy, food and grocery retailers such as Sunil Mittal’s Bharti Retail, Kumar Mangalam Birla’s Aditya Birla Retail, and Tata group-owned Star Bazaar are struggling to turn in a profit.