The retail slowdown, coupled with high rentals in the North, has started taking its toll on retail stores. The overpriced rentals in Chandigarh have eaten into the profit margins of retailers.
With profit margins of companies being hit, the firms are taking a host of measures including closing down the unprofitable stores.
The stores promoted by REI Agro recently closed 30-odd discount stores that were running into losses.
Sandeep Jhunjhunwala, managing director, says that all the unviable ventures had been closed down by the company in the past and the company would continue to close the non-profitable ventures.
Subhiksha, which opened around 75 stores in Chandigarh, Mohali and Panchkula, is reportedly running out of stocks.
Even as the company officials continue to deny the fact that Subhiksha stores are running out of supply, a visit to stores makes it plain.
According to customers who visited Subhiksha stores in the city, the stores were running out of stocks like toiletries, grocery items and fruit and vegetables.
