ISRAI:A New Barometer to Appraise Retailing Attractiveness in Indian States

The greatest challenge in decision making that retailers cope up, is in choosing an ideal destination for retailing. This paper delves deep to evaluate the relative attractiveness of retailing destinations among 29 Indian states by constructing a new composite index (ISRAI). Multiple criteria decision making framework of TOPSIS forms the structural base of this index. Five factors representing market attractiveness and fifteen differing criteria explaining them are identified from prior research. For a more realistic estimation, this index incorporates criteria weights determined from entropic considerations. This study has identified states with higher attractiveness of retailing opportunities, which includes the larger as well as smaller ones in terms of geographical area. Finally, the outcome of ISRAI has been validated with VIKOR, a contemporary prioritization model. A significant convergence of outputs from these two approaches endorses validity of ISRAI and thus its use by retailers as a decision making tool is anticipated.