Introduction: This study makes an attempt to find out the efficient organizations in the retail industry in terms of scale efficiency, technical efficiency, technological efficiency and the total factor productivity using Data Envelopment Analysis (DEA). The TFP Index technique is used to construct a grand frontier based on the data from all sectors. Each sector is compared to the frontier. Material & Methods: This study attempts to evaluate the total factor productivity of organizations in retail industry specializing in retailing of merchandise of different sectors like apparels, fashion and lifestyle, electronics and general retail. Seven companies have been chosen for this purpose. The study makes use of the Malmquist Index approach to find out the dynamic efficiency of the total factor productivity of the selected players in the retail industry. Results: The retail sector experienced an overall positive TFP growth of 1.2% during 2012-2016. The analysis of companies reveals that five out of seven companies enjoyed positive TFP growth. The overall TFP growth is positive due to improvement in technological change of 5.1%. On the other side Technical efficiency change is less than unity, has a negative effect on the overall TFP growth. We find pure technical efficiency has contributed to the improvement in Technical efficiency change but the Scale efficiency has had a dampening effect on the Technical efficiency change. Conclusion: The Indian Retail Sector reflects both the labour saving and capital using technology. Favourable demographics, increasing urbanisation, nuclearization of families, rising affluence amid consumers, growing preference for branded products and higher aspirations are other factors which will drive retail consumption in India for the future.
Volume 12 | 04-Special Issue
Pages: 738-747
DOI: 10.5373/JARDCS/V12SP4/20201541