The last nine months of Reliance Retail has seen losses beyond resumption, specially in food, grocery and jewellery sector. Their unrewarding scores have resulted a shutter down in 20 stores all over the country. To cope with the losses, Reliance is planning to introduce Reliance Smart in the coming months. It would include clothing, accessories and other lifestyle formats from a size of 7,000 sq. ft up to 20,000 sq ft.
As a part of expansion, some of the existing hypermarkets and supermarkets have been re-branded as Reliance Smart. Sources reveal, this venture would surely be larger than Reliance fresh but smaller than a hypermarket. Reliance Smart will incorporate the products of Reliance fresh as well as add up sections of apparels and toys along with others. Also heard, Reliance Retail is aiming at making their retail business successful and has started the process of closing down the stores which are not rising up to the expected profit.
As the company graph goes, Reliance had around 597 stores which were Reliance Fresh, Reliance Mart, Reliance Market etc till December 31. As per the annual report, by March 2015 there were 616 stores spread across 5.42 million square feet. Which is the biggest revenue generator, thus contributing around 54 per cent to the revenues of Rs. 17,640 crore last fiscal.
Reliance decided to shut down more than 100 stores in the financial year 2015, which include food, grocery, retailing and jewellery . Despite all, the company has added on to its count from 2,857 to 3,043 stores towards September. By December quarter, their retail division has come up with more stores for the digital and lifestyle formats.
Reliance Retail has seen persistent increase in their turnover for last couple of years. Their decision to shut down the not so progressing stores would help them concentrate on other profit making sectors and improve their margins. Their online venture with many stores would increase the business in nearby localities thus moving in the pace of constant growth.