Akbarallys - Reinventing for Profits*



Case Code : CLSDM004
Publication date : 2005
Subject : Sales and Distribution
Industry : Retailing
Length : 03 Pages
Price : Rs. 100

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Key words:

Akbarallys, Wockhardt, Shopper Stop, Pantaloons, Specialty Stores, Retail Chain, Profit Margin, Store, Employees, Malls. Powers, Promotional Strategies


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This caselet talks about Akbarallys, an early retail player, and its falling revenues in the face of emerging competition. It explains the reasons behind this dismal performance. It discusses the various tactics deployed by the retail chain to improve its bottom line. It also mentions the internal measures taken by Akbarallys to motivate employees.


Need to recognize market changes in retailing
Importance of reinventing for growth


Akbarallys, the retail chain, was started by the owners of the Wockhardt group -- the Khorakiawala family - in 1897. In the 1980s, Akbarallys enjoyed a monopoly in large format outlets in Mumbai, with an impressive list of customers comprising the city's elite. It was known for its promotion schemes like gift vouchers.

The chain had three outlets in Mumbai...

Questions for Discussion:

1. Akbarallys, one of the oldest retail chains in India, started underperforming in the face of competition from upcoming malls in the retail industry. What were the flaws in the operations of Akbarallys, which resulted in losses and poor sales turnover?

2. Akbarallys started a turnaround strategy in its business to bring it on a par with other retail companies. Elucidate the measures it took in this context. What are the other measures that Akbarallys can take to keep up with current market sentiment?