NEW DELHI: India’s largest retailer, Reliance Retail, has expanded its trading area in the non-food and general merchandise sector in its grocery store by almost 50 per cent to improve margins.
The retail giant is now planning to revise its stores, to allocate higher trading areas for non-food and general merchandise items, a segment which offers higher margins than other segments such as grocery and apparel.
The expanded retail space will enable Reliance Retail to provide a comprehensive range of products for each segment and address any gaps in its offerings, according to the source.
In the latest June quarter, Reliance Retail’s EBITDA margin from operations was 8.2 per cent, which was up 30 basis points on a Y-o-Y basis. For FY 2023-24, its EBITDA margin was 8.5 per cent, improving by 70 bps on Y-o-Y.
Additionally, it will also aid in competing with the growing quick-commerce platforms through its “hyper-local model under Jiomart, where it is investing in enhancements to the technology platform, supply chain capabilities and distribution capabilities.
Reliance Retail is trying to improve its margins, aiming to double its business in the next 3-4 years. It is enhancing its play in the premium space as it believes as disposable income increases in the country, demand for goods and services is expanding rapidly.
During June quarter earnings calls, Reliance management had said it is “streamlining of operations which is driving the margin improvement.”
Reliance Retail, in its latest annual report said that focus on range expansion across non-food categories remains a “key priority”. The retail enterprise further added that it stores witnessed continued growth in the non-food category led by General Merchandise and Home & Personal Care categories.
In the AGM, Reliance Retail revealed about its plans of entering the “luxury jewelry segment” with a curated, design-led experience and is also eyeing the fashion jewelry and accessories segment.
Reliance Retail is operating 18,918 stores pan India as of June 30, 2024, with a total retail area of 81.3 million sq. ft. Besides, it is among the top 10 global retailers by market cap and among the top 30 by revenues.
Reliance Retail’s gross revenue for FY24 stood at Rs 3.06 lakh crore. Its stores witnessed over a billion footfalls and reported more than 1.25 billion transactions across its channels. It opened 1,840 new stores in FY’24 and is already among the Top-5 global retailers in terms of number of stores.
The retail giant is now planning to revise its stores, to allocate higher trading areas for non-food and general merchandise items, a segment which offers higher margins than other segments such as grocery and apparel.
The expanded retail space will enable Reliance Retail to provide a comprehensive range of products for each segment and address any gaps in its offerings, according to the source.
In the latest June quarter, Reliance Retail’s EBITDA margin from operations was 8.2 per cent, which was up 30 basis points on a Y-o-Y basis. For FY 2023-24, its EBITDA margin was 8.5 per cent, improving by 70 bps on Y-o-Y.
Additionally, it will also aid in competing with the growing quick-commerce platforms through its “hyper-local model under Jiomart, where it is investing in enhancements to the technology platform, supply chain capabilities and distribution capabilities.
Reliance Retail is trying to improve its margins, aiming to double its business in the next 3-4 years. It is enhancing its play in the premium space as it believes as disposable income increases in the country, demand for goods and services is expanding rapidly.
During June quarter earnings calls, Reliance management had said it is “streamlining of operations which is driving the margin improvement.”
Reliance Retail, in its latest annual report said that focus on range expansion across non-food categories remains a “key priority”. The retail enterprise further added that it stores witnessed continued growth in the non-food category led by General Merchandise and Home & Personal Care categories.
In the AGM, Reliance Retail revealed about its plans of entering the “luxury jewelry segment” with a curated, design-led experience and is also eyeing the fashion jewelry and accessories segment.
Reliance Retail is operating 18,918 stores pan India as of June 30, 2024, with a total retail area of 81.3 million sq. ft. Besides, it is among the top 10 global retailers by market cap and among the top 30 by revenues.
Reliance Retail’s gross revenue for FY24 stood at Rs 3.06 lakh crore. Its stores witnessed over a billion footfalls and reported more than 1.25 billion transactions across its channels. It opened 1,840 new stores in FY’24 and is already among the Top-5 global retailers in terms of number of stores.
