India’s first catalogue store, Hypercity Argos, a joint venture between Shoppers’ Stop’s Hypercity Retail and Argos, UK has decided to wind off its 5 store Indian operations within 2 years of opening it.
The reason cited is the non-performance of business and did not warrant further investment. However, there may be more to it as international retailers need funds for expansion and are witnessing slump in sales.
Hypercity Argos was the Argos’ first international expansion outside of Europe and it has now put a stop on international expansion.
Also, when compared with Online shopping, catalogue shopping scores lower on many counts such as product variety, availability and cater to wider market area. Also, it can adapt easily to changing market needs and launch latest products without difficulty and cost.
With retail industry in shambles, the sector is set for major consolidation and once can hope to see more corporate activity in near future.