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Tuesday, 05 October 2010 |
Reliance Retail the retail arm of Mukesh Ambani’s Reliance Industries is on a rapid expansion drive.
Sensing an opportunity for opening 2,000 to 5,000 stores, they first plan to expand to larger cities, classified as Tier I and II, before entering Tier III and IV cities and towns across India. Following the example of kirana or neighborhood stores, Reliance Retail will also start home delivery of groceries. The Indian retail market is estimated at Rs18.28 trillion, in which organized retail accounts for a mere 3 per cent share.
Reliance Retail’s new push comes after months of putting expansion on hold. Currently, it has 660 stores in less than 100 cities, the most among its peers. The food and groceries business accounts for 65 per cent of Reliance Retail’s overall business, while non-food business or specialty retail accounts for the rest with 300 stores.
Reliance Retail was set up in 2006 to lead the Reliance Group’s foray into organized retail. It operates several value and specialty formats. The value formats are Reliance Fresh, Reliance Mart, and Reliance Super. The specialty formats are Reliance Digital, Reliance Trends, Reliance Wellness, iStore by Reliance Digital, Reliance Footprint, Reliance Jewels, Reliance TimeOut, Reliance AutoZone and Reliance Living. |
