Reliance Retail, a subsidiary of Mukesh Ambani led Reliance Industries Limited (RIL) is expecting to see its same-store sales increase by a whopping 20 per cent in the FY 2011. This anticipation is riding on the back of steady consumer spending over the last year; negating any adverse affects that can be rendered as result of present economic conditions. Bijou Kurien, President and Chief Executive Officer (CEO) of Reliance Retails’ lifestyle segment noted at an industry conference that the company is eyeing tremendous growth based on the steady graph its value retail format and electronic format are charting.
While soaring interest rates and inflation markup have added to the concerns of organized retail players, the sector is optimistic that the industry will sail through buoyantly, given it continues to grow in double digit counts. Also, as government has allowed for foreign direct investment (FDI) in multi-brand retail, domestic players are looking to partner up with top global retailers to diversify and expand their market.
Reliance Retail, too, has chalked out plans to improve its retail arm through global partnerships and by overhauling the process altogether. As RIL looks to diversify beyond its core energy business, it has sought to bank upon its retail arm to push the next stage of the company’s growth. For this, Reliance Retail has roped in top executives from Wal-Mart China, Rob Cissel and Shawn Gray. While Rob Cissel will serve 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. The newly instated management is expected to gradually improve upon and make lucrative the big format of Reliance Retail.
Reliance Retail currently operates around 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.