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Subhiksha is believed to owe rs 35 crore against goods, rs 18 crore against wages, and rs 20 crore against lease rents.
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How did the turndown begin at Subhiksha stores?
Turndown began at Subhiksha: The management has committed some eventual mistakes which have led the company towards the downward position. The first and big mistake committed by the management of Subhiksha is expanding the number of stores rapidly without sufficient funds in hand.
Why are Subhiksha stores always selling at below DP?
The CEO never looked in to system losses arise from telecom. Subhiksha stores always sell handsets at below DP while its benchmarking is to match DP. No control on inventory of mobile accessories and there stock value and were unable to circulate the working capital.
What was the reason for the failure of Subhiksha?
Reasons for failure of Subhiksha Expanding the number of stores rapidly without sufficient funds in hand. Expansion of Stores without adequate system control and IT Support. Government Intervention. Lack of strong HR policy and Staff.
When was the first store of Subhiksha opened?
1. SUBHIKSHA’S DOWNFALL. FACTORS: 5. EXPANSION TIME LINE • • • • • • • • In March 1997 opening of the first retail store in Chennai, with $ 1 million initial investment. March 99‐ 14 stores in Chennai. June 2000‐ 50 stores in Chennai, ICICI ventures joins Subhiksha. June 2002‐ 120 stores in whole of Tamil Nadu.
Last Update: Oct 2021
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