Mukesh Ambani-led Reliance Retail is looking to cut operational costs by renegotiating property rentals downward by 20-25 percent for existing as well as new stores, an official of the company said on Friday. Reliance Retail also plans to add m ore stores this fiscal, especially in its lifestyle segment. “Rentals have come down a bit. A more realistic number for downward renegotiation in malls is about 20-25 percent, but it varies in metros and smaller towns,” said Bijou Kurien, President & Chief Executive, Reliance Retail.
Kurien, however, declined to give details on the capex earmarked for FY’10 and the store expansion target. “There is no denying the fact that last year was tough, especially the way consumer behaviour was demonstrated in spending. There was a slowdow n and our rate of addition of stores between October and March was relatively slower,” Mr Kurien added.
Source: The Hindu Business Line