Outlining a new growth and brand strategy for its value format business, Reliance Retail, a subsidiary of Reliance Industries, on Wednesday said it would base its business on four growth pillars –– strengthen presence in multi-brand format; drive growth through hypermarkets; become a leader in fresh food quality and enable growth through world-class infrastructure such as distribution centres, fresh processing centres and customer innovation centres.
Sharing a five-year business plan, Gwyn Sundhagul, chief executive officer of the company’s value formats, said: “We have prepared a robust, sustainable and deliverable business plan that will help us achieve the growth and returns that we have set for our business. We have also built a very strong and experienced top leadership team to ensure we can implement the plans.” Sundhagul, formerly with Tesco in Thailand, joined Reliance Retail three months back.
The multi-format retailer has unveiled a new brand expression, Aapki Khushi Hamari Khushi, and a vision to generate inclusive growth for its key stakeholders like employees, farmers, kirana stores, customers, vendors and supply chain partners. The company, which opened its first store in 2006, at present, has around 1,000 outlets across 86 cities and operates multi-format chains such as Reliance Fresh, Trends, Jewels and Time-Out stores.
Last year, Kishore Biyani-led Pantaloon Retail India Limited (PRIL) hived off its value segment into a separate company, Future Value Retail. The value retailing segment of the company consists of supermarket Food Bazaar and hypermarket Big Bazaar, which contributes up to 55% to PRIL’s total revenues. It currently operates more than 120 stores across the country.
Analysts tracking the companies closely feel that such decisions are taken mainly to increase the number of footfalls into their stores or make the loyal customers stick to their brand when it comes to strengthening presence through hypermarkets. Moreover, retailers also benefit from a diverse product mix.
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