Similar yet Different: A Comparative Study of Profitability Performance of Indian Retail Sector with a special reference to Big Bazaar and D Mart

Abstract

Indian retail market has emerged as one of the fastest-growing markets due to economic growth and the entry of several new players. Rising income and demand for quality products increases consumption expenditure. The present study aims to analyse the performance of the Indian Retail Sector as well as the variables/factors that make the Profit of Big Bazaar and D Mart, Different, despite their Similar Sales Revenue. Some variables such as Net Profit Margin, Inventory, Inventory Turnover Ratio, Accounts Receivables and Trade Payables have been taken to study the profitability of the two selected players. The study concluded that despite the insignificant difference in the means of Sales of Big Bazaar and D Mart, there has been a significant difference in the means of Net Profit Margin, Inventory, Inventory Turnover Ratio, Accounts Receivables and Trade Payables of Big Bazaar and D Mart. Though the sales of Big Bazaar and D Mart are marginally different, D Mart’s position and profitability performance have been found better which can be reflected in the Share Prices and Market Cap of both the organizations.