Reliance Retail to roll out the next stage of its retail expansion plans

Reliance Retail, a retail subsidiary of Mukesh Ambani run Reliance Industries Limited (RIL), is all set to roll out its second phase of expansion, by introducing a comprehensive value retail format that accommodates a mix of both retail and wholesale cash-and-carry format.

In the initial stage, Reliance plans to set up fourteen such stores in selected cities across the country, including Ahmedabad, Amritsar, Bhatinda, Ludhiana, Jallandhar, Patiala, Rai, Hissar and Panipat. These stores will be established under the name ‘Reliance Market’ and in some cases the existing hypermarkets will be expanded to merge with the new business model.

Reliance Ambit Trade, a RIL subsidiary set up to carry out development of commercial properties, will assign land and commercial space for this project. Funds to support this major expansion spree will be garnered from RIL’s capital reserves and from what is generated as a result of RIL-BP deal.

Reliance Retail incurred heavy looses over the last few years, following which a decision was taken to overhaul the entire business model, from top to bottom. First off, Reliance Retail brought in executives from Wal-Mart China, Rob Cissel and Shawn Gray. While Rob Cissel will chair as the new CEO of Reliance Retail, Shaw Gray will take the role of a COO for the business format. The new management team will function with a primary target of making the business more profitable within the next two years. Reliance Retail had been in the process of restructuring the entire value chain under the previous management but the newly instated management is expected to gradually improve upon and make lucrative the big format of Reliance Retail.

Reliance Retail currently operates 1,000 stores under 46 subsidiaries across 86 cities in the country. Around 650 such stores are run under the value format of Reliance Fresh, while others are categorized under specialty formats, including apparel, footwear, gems, electronics, and jewellery.

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