Extracting performance improvement factors using DEA for a robust Indian retail industry

The Indian retail industry is facing high growth trajectory which is attracting a number of players both domestic and foreign. Given its role in the growth of the Indian economy, a robust retail industry is the need of the hour. An understanding of the efficiency levels of some of the retail players and an identification of the variables that have an impact on the level of efficiency is required to increase and sustain the robustness of the industry. The current study extracts and analyses performance improvement factors that have an impact on the efficiency of organised retail companies of India by analysing data corresponding to 12 variables for six retail companies over a period of seven years. The findings of the study showed that five out of the six Indian retail companies studied faced inefficiency at least during one of the years over the period of seven years under study. The three input variables that the current study suggest need careful consideration by the companies are handling of receivables and inventories (current assets) followed by advertising and power and fuel expenses.