The country’s largest retailer Reliance Retail has increased the trading area of general goods and non-food items in its grocery stores by about 50 per cent to improve margins. An industry insider said that with this step the company wants to promote local sales through its e-commerce platform JioMart.
Retailers are connecting their smart and marketplace stores through JioMart, thereby providing more variety to consumers. Under this, Reliance Retail is now introducing changes in its stores and allocating more retail area for general and non-food products. This is a segment that offers higher margins compared to other segments like grocery and apparel.
How much did you earn in the June quarter?
In the last quarter of June, Reliance Retail’s profit before tax (EBITDA) margin from its operations was 8.2 per cent, up 0.3 per cent on a year-on-year basis. Its EBITDA margin in fiscal 2023-24 was 8.5 per cent, which improved by 0.7 per cent on a year-on-year basis. An email sent to Reliance Retail for comment on this matter had not been responded to as of this writing. Reliance Retail is looking to double its business in the next 3-4 years. The company is also trying to improve its margins.
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Continuous work in the supply chain.
Moreover, Reliance Retail will also help compete with rising fast-commerce platforms through its “hyperlocal model under JioMart” where it is investing in improving technology platforms, supply chain capabilities and distribution capabilities. Reliance Retail, which aims to double its business in the next 3-4 years, is looking to improve its margins. It is upping its game in the premium sector because it believes that as disposable income in the country increases, the demand for goods and services is increasing rapidly.
Reliance Retail is among the largest companies in the world
As on June 30, 2024, Reliance Retail operated 18,918 stores spread across the country, with a total retail area of 81.3 million sq ft. Reliance Retail opened 1,840 new stores in FY24 and is already among the top five global retailers in terms of store count. The company is one of the top 10 global retailers by market capitalisation and among the top 30 by revenue. Reliance Retail’s gross revenue in FY24 was Rs 3.06 lakh crore (US$ 36.8 billion). Over 1 billion people visited its stores and over 1.25 billion transactions were reported on its channels.
