Though, Indian retail market has been favored as an attractive destination for retail investment, it has witnessed many promising retailers crumble. With numerous handicaps like that of infrastructure, regulations, etc. entrepreneurial over-enthusiasm and underestimation of market dynamics has brought disgrace to many Indian retailers. The article discusses about Subhiksha which has become a victim of aggressive expansionary plans and lack of financial acumen. Moreover, indispensable aspects of modern retail like supply chain management were disregarded at the cost of lost sales and dissatisfied customers. The article seeks for reasons behind the debacle of Subhiksha, the prolific discount retailer.

In March 2008, the Boston Consulting Group named Subhiksha one of the world’s top 50 ‘local dynamos’. And less than a year later in 2009, the brand was in oblivion and the company bankrupt. Quite strange, but true, the obituary of the most prolific Indian discount retailer Subhiksha has been epitaphed emphatically; to the disappointment of many organized retail proponents in India. The precocious retail institution which grew exponentially was unfortunately left rudderless, leading to its untimely obliteration. Symptomatically, though one could have effortlessly surmised the fate of Subhiksha by the unfolding of events in the year 2008, the number of hopefuls outnumbered the pessimists. Such was the aura and conviction in the retailer that even after the debacle, people are willing to rewrite its story. By all odds, the sector and the company specifically were nestled in such a position that major venture capital firms and bankers were eager to be a part of the growth story.

The million dollar question which remains is that why did Subhiksha apparently succeed, and why did the business unravel so quickly? Why whatever was lauded went wrong, and how? The article tries to unveil aspects which were overlooked and consequently proved dear to the company.

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