Thursday, February 22, 2007

Subhiksha stocks falling short

Subhiksha Trading Services is facing a severe shortfall of stocks in its stores due to rapid expansion plans. The company has set up around 80 stores in and around Mumbai in the past three months and is not able to keep up with keeping the stores fully stocked, in key categories such as soaps, detergents and certain foods. R Subramaniam, MD of Subhiksha Trading Services, admitted that the company has been facing a shortage of around 20-25% in certain categories in in Mumbai stores, as they had underestimated their demand. Industry sources instead feel that the company who usually only stocks 750-800 SKUs (stock keeping units) for each of its stores, needs to carry a minimum of 1,500 SKUs. The company stocks its stores from its distribution hub at Bhiwandi, outside of Thane.

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