Reliance Retail, the retail wing of the Mukesh Ambani -led Reliance Industries Limited (RIL), has emerged as the world’s sixth fastest growing retail company. This is as per a report by Deloitte. This has been attributed to the wide range of accessible and affordable products and services offered by Reliance Retail.
Details about the report
In the list of 50 fastest growing retail companies released by Deloitte, Reliance Retail has secured the sixth position. The list has placed the company above sports apparel manufacturer Nike and e-commerce company Amazon.
The first position on the list is held by Albertsons Companies, which is a US-based grocery firm. The second-fastest growing retailer on the list is Vipshop, while the third-fastest is JD.com. Both of these companies are Chinese online retailers. The fourth position was secured by Wayfair, which is a US-based e-commerce portal. The fifth position was secured by A101 Yeni Magazacilik AS, which is a Turkey-based company.
Details about global retail companies
Earlier in 2019, Deloitte has released a list of 250 large retail companies of the world. RIL secured the 94th position on this list. The first position was secured by Walmart, which is a US-based retail company that has a presence in 29 countries. Fourth on the list was Amazon, which currently operates across 14 countries. Both these companies have made forays into the Indian retail market in the past few years.
The progress of RIL
Not only did RIL secured positions on both the aforementioned lists, but it is also the only company from India to feature on both of them. In the December quarter of the financial year 2018-2019, RIL’s organized retail segment experienced an 89 percent growth. In terms of value, this growth was INR 35,577 crore. This is according to RIL’s financial results. During the same quarter of the previous fiscal year, RIL’s growth was INR 18,798 crore.
Between the financial years 2012 and 2017, Reliance Retail had a Compound Annual Growth Rate of 44.8 percent.
The future of Reliance Retail
To broaden the market reach, Reliance Retail aims to make use of omnichannel methods, that is, integrate brick-and-mortar retail and online platforms. Hence, top-line traction is expected to be intact. With regard to fuel retailing, the top-line growth will be volume-driven. Reliance Retail also aims to recommission existing outlets to expand its presence. Reliance Retail is expected to attain margins between 4.5 percent and 5 percent by the end of the 2020 financial year.
About Reliance Retail
In terms of sales and network, Reliance Retail is the country’s largest multi-category retailer of products such as groceries, consumer electronics, fashion and lifestyle, and fuel. As of September 2018, Reliance Retail stores have served 3.5 million customers in a week. This was done via 9,146 outlets across 5,800 cities in India.
Summary: Reliance Retail has emerged as the sixth fastest growing retailer in the world, according to Deloitte. This is attributable to the variety of accessible and affordable products and services offered to the Indian masses.