According to a new report from KPMG, the strength of the retail sector in India is waning due to the closure of several big-name brands. In 2008 and 2009 – the era hailed as the peak of the retail industry in the country – there were more than 4,500 retail stores. As of now, however, that number has shrunk to 2,900, a decline of approximately 38 percent.

Most of the decrease took place in 2009 and 2010, when retail powerhouses such as Subhikhsa went under. While things have stabilized in 2011 and 2012, the sector has shown relatively flat growth, suggesting conditions could still improve.

"It's not an easy business to be in and every retailer in the country is revisiting [their] strategy. In this phase of consolidation, retailers are looking at improving supply chain efficiencies, experimenting with formats that work best," Sandeep Gupta, managing director at Protiviti, told the Hindustan Times.

Retailers looking to bolster efficiency should consider leveraging retail software solutions. This can help them identify potential weak points while further streamlining store operations.