Effect of Different Dimensions of Inventory Management of Fruits and Vegetables on Profitability of Retail Stores: An Empirical Study

Abstract

In today’s challenging and competitive scenario, Indian retailers (organized sector) of fruits and vegetables need more dynamic strategies in order to provide customer satisfaction and retention. Purchasing, overstocking, stock-out, throw away, markdowns, etc. are different activities that are undertaken in a retail store selling perishable inventory, especially fruits and vegetables. These factors affect the profitability of the retail store, directly or indirectly; hence, proper control over these factors must be the primary objective of the retailer selling fruits and vegetables. This article aims to find out significant relationships within these parameters of inventory management so that retailers find it helpful in devising strategies for a better competitive edge. First, factors are identified, and then, statistical tests (chi-square and analysis of variance) are used to derive conclusions.