Incorporating sustainable decisions with the retailer’s operational management has attracted enormous significance due to government regulations and customer demand for environmental consciousness. However, incorporating sustainable operations may interfere with the operational performance of the firm and, hence, retail companies need to examine the influence of these operations on overall supply chain efficiency. The present study develops a performance measurement model based on a two-stage network data envelopment analysis (DEA) technique for measuring the joint impact of sustainable operations and operational activities on the business performance of a retail company. A case study of an Indian electronic retail chain is presented to reveal the potentiality and suitability of the proposed models. The novelty of the paper lies in establishing DEA models for an Indian retail chain company and for providing an analytical understanding of the conditions under which the strategic decisions at the operational level successfully support the integration of sustainable operations into the SC management. The results show that the additional sustainable constraints lead to improved operational efficiency of some firms of the retail chain and result in improved business efficiency, while for other firms the integration of sustainable objectives decrease business efficiency. The significance of the study lies in providing efficient target conditions for inefficient retail stores to improve their performance. The findings of the study provide meaningful insights to Indian retailers venturing into sustainable retailing operations for enhancing the operational and business efficiency of the supply chain.