IndiaRetailBiz

Reliance Digital, the consumer durables and professional elecronics format of Mukesh Ambani-led Reliance Retail, which also resells iconic Apple products through its standalone and shop-in-shop “iStore” retail format, is going in for a big expansion this year. It has prepared a blueprint to expand double the number of its store from 10 at present to 20 by 31st March, 2010.

Likewise, the company will be adding 21 Reliance Digital stores to its present strength of 14 stores. Thus, by 31st March 2010, Reliance Retail proposes to have a pan-India retail network of 55 speciality stores comprising 35 Reliance Digital and 20 iStore stores.

The expansion, according to Ajay Baijal, Reliance Retail’s President and Chief Executive (Consumer Durable, IT & Telecom), will entail a new investment of Rs 110 crore as each new Digital store costs around Rs 4 to5 crore while each iStore costs around Rs 40 lakh. This was revealed by Baijal while speaking to PTI on the subject.

Reliance Digital stores, which competes with the likes of Croma (Tatas), Next (Videocon), e-Zone (Future group), Excite, among others, at the national level and with Vivek’s, Vijay Sales, etc at the regional level, occupy a large space of between 10,000-40,000 sq ft each. “iStore,” outlets, which are basically exclusive (single) brand outlets that derive their strength from umbrella brand-name of Apple, on the other hand, on the other hand, are small sized stores occupying 1,000 to 1,500 sq ft space each.

The company, according to Baijal, is already scouting for properties to implement its ambitious expansion plans.

Consumer durables and electronics, which offers a Rs 50,000 crore (over $10 billion) opportunity, is currently dominated by tradional, small traders.