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Abstract

Retailing involves understanding the customers, their needs and expectations. Satisfying customer's expectations while maintaining wafer-thin margins is a heroic task for most of the retailers. Indian retail is still in the infancy stage, with the retail revolution and there are a number of challenge factors which need to be overcome and a number of opportunity factors which need to be leveraged upon, if organized retailing is to flourish the way it ideally should. According to Knight Frank research report, Tri-city is an emerging market for organised retail. Good connectivity at domestic and global level, lower operational cost and easy availability of skilled labor, higher disposable incomes and lavish lifestyle has put organised retail on an upswing in the region. However, with little scope left for further development within the region, skyrocketing property prices and diluted peripheral control act placed on the outskirts, there are numerous challenges in the development or organised retail. This field study is done for identifying the opportunities and challenges faced by organized retailers in the tri-city (Chandigarh - Panchkula - Mohali) region. It was found that organized retailers see competition from the unorganized sector as their biggest challenge, followed by competition between organized retailers and the inefficiency of distribution channels, internal logistical problem and retail shrinkage, while unorganized retailers see organized retailing as their major challenge, followed by cost of operation, logistical problem, competition with other kirana retailers and inefficient distribution channels. It was also found that organized retailers see growing middle class as their greatest opportunity followed by large number of earning youth customers. The tri-city region has people from all over India having proportionate increase in spending with earnings and India's booming economy. Thus, the study found that the major challenges as well as opportunities of organized and unorganized retail are almost the same. This means that mitigating the challenges and leveraging on the opportunities could benefit both sectors.

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