Measuring Operational Efficiency Of Retail Stores In Chandigarh Tri-City Using DEA | Vandana Sharma & Himanshu Choudhary

The purpose of this study is to measure the operational efficiency of retail stores in Chandigarh-Tricity and to investigate if any relationship can be established between the efficiency and the size of the stores. The data collected from retailers and customers across Chandigarh Tricity (Chandigarh, Panchkula and Mohali) during 2006 – 2008 was analyzed using an operations research – based method, Data Envelopment Analysis (DEA), as this method was appropriate to study efficiency of operations. The findings suggest that the percentage of the retail stores operating efficiently in Chandigarh tricity is very low. Also no significant relationship was demonstrated between the efficiency score and size of retail stores. The study has great significance for the retailers as it provides the important parameters to measure efficiency of retailers which in turn are of utmost importance to any retailer to make future strategies. The research study was conducted in 200 retail outlets in Chandigarh Tricity. This sample might not portray an accurate representation of the organized retail scenario in the Tricity. Input and output variables were carefully chosen for the study, but they may/ may not accurately reflect the retail firm’s goals, objectives and sales situation. Variables such as profits and margins could also be very beneficial for analysis and may be considered for future research