IndiaRetailBiz

Reliance Retail Limited– part of Mukesh Ambani-led group’s flagship Reliance Industries Limited– though happy with growth of some of its niche formats and fall in commercial lease rentals to sensible levels, is yet not ready for aggressive expansion.

Reliance, among the largest retailers in India, occupying over 3.5 million sq ft of space and operating in around 60 cities across the country like many of its large counterparts in retail sector, as a consequence of global economic slowdown last year, had to face the challenges of falling footfalls and lower consumer spending. While, the retailer was forced to close a few of its under-performing stores, the retailer is back into expansion mode. Although happy with good growth in some specialty formats and comfortable with falling commercial rents to sensible levels the company may not be as aggressive in expansion this time as before. It may, as such, while taking a cautious approach towards expansion, may also take a re-look at some of its specialty business formats

“Apparel, jewellery and footwear have witnessed good growth figures, but the company will not expand as aggressively as before,” said Raghu Pillai, Director RIL and President-retail, strategy and operations. (Source )

Reliance, according to Pillai, is likely to tweak retail chains catering to leisure and furniture product categories. The company is presently operating Reliance Timeout and Reliance Living Furniture, specialty retail chains respectively in these categories. Beside furniture, Reliance also operates two sub-formats under “Reliance Living” format called Reliance Living Homeware and Reliance Living Furnishings.

“We are looking to tweak two of our 11 odd formats,” said Raghu Pillai. “These formats include the furniture stores and the music & books category. At present, we have around four to five stores in the furniture space,” added Pillai.

Apart from Reliance Fresh (supermarkets), Reliance Super (mini-hypermarkets), and Reliance Mart (hypermarkets), Reliance is also operating several specialty formats that among others include Reliance Trends (apparel and accessories) , Reliance Digital (Consumer electronics and appliance, professional electronics), Reliance iStore (Apple products), Reliance Wellness (medicines and healthcare), Reliance Footprint (Shoes and accessories), Reliance Timeout (Books, toys, music, gifts), Reliance Jewels (Jewellery), Reliance Autozone (Auto accessories and services), Vision Express (Eyewear & opticals JV with Pearle Europe), M&S (Apparel, accessories and homeware JV with Marks & Spencer of UK).