As per a report in Hindu, Aditya Birla’s retail chain “More” is the latest to join the group of retailers exiting the Consumer Durables category. Earlier, in June this year, e-commerce firm Flipkart, discontinued sales of consumer durables and IT. Likewise, Tata-owned Star Bazaar has decided not to stock large and bulky electronic goods and plans to focus more on items which have a higher repeat purchase cycle.
Separately, hyper market chain Hypercity decided to launch a smaller, 30,000 sq. ft. format which eliminated Consumer Durables. The reasons are many. The Consumer Durables business is said to be down by 8-10%. The category requires large shelf space which becomes difficult to justify given the thin margins and high real estate costs. Add to this storage, issues of warehousing, transportation and breakage. Further add the high churn rate as a result of new technology, with a product launch every seven days making it difficult for retailers to maintain a sufficient representation for the category.