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.
Find this article at: http://www.labnol.org/india/corporate/end-of-catalogue-shopping-in-india/6869/
Tags: consolidation, retail, Corporate, India
Reader Comments
Indians are new to the concept of shopping in organized retail outlets. Many Indians still enjoy shopping. e-Shopping of books and such products where you don’t have to depend on look & feel will continue but the rest will be in outlets atleast for the next 5 years.
Written by RetailMantra on 01.31.09
Difference; Accessibility; Innovation is what makes catalog shopping a success. Mumbai does not probably need it. Hinterland definitely needs it. Otherwise why would TV shopping be a definite success.
Written by Anaggh A. Desai on 02.09.09