Retail sector which is one of the fastest growing sectors in the Indian economy is an area of research interest. The study focuses on understanding how the WCM in retail firms contributes to the profitability. The gaps in the existing literature studies indicate the requirement of detailed study to explain the impact of WCM on the profitability measures of Retail companies. It is felt that there is a need to make a new attempt to diagnose the advantage and opportunities for longer-term WC improvement. Working capital is the reflections of various efforts done by companies include debt management, CCC, ACP, Inventory mgmt. and APP. The requirement of WC depends on the nature of industry, and amount of WC can even differ among same type of companies. This can be due to influence of various factors like policies of payment and collection, operation cycle of organization, efficiency in credit policy, raw material availability and nature of business etc. A well designed and implemented WCM is expected to contribute positively to add value to the firm. The above research is undertaken with the object of study the different factors affecting the working capital of Indian retail sector firms and to examine the impact of different measures of working capital management (i.e. Average Collection Period, Inventory collection period, Cash Conversion Cycle, Average Payment Period) on the Profitability of the organised retail sector firms in India. 

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Keywords: Profitability, Working Capital, Organization, Opportunities, Management, Efficiency.