Reliance Retail Profit Up 6.2%; Acquires Centro Footwear

“The business expanded its physical store network with 789 new store openings totaling to an area of 6 million sq. ft. The quarter recorded highest ever footfalls at 201 million across formats and geographies. The business continued to invest in bolstering its infrastructure capabilities by expanding over 2.2 million Sq. ft. of warehouse space. With a workforce base of over 418,000 job creation and re-skilling of people remained a cornerstone of Reliance Retail’s mission of inclusive growth," the company said announcing its quarterly earnings on Friday.

The company’s digital commerce and new commerce businesses grew 38% year-on-year and contributed to 18% of the revenue.

Reliance Retail is the country’s largest organized retailer with presence across categories such as consumer electronics, apparel, footwear, grocery, and general merchandise.

During the quarter, Reliance Retail strengthened its product offerings with the acquisition of South-India based retailer and distributor V Retail (Centro Footwear). Meanwhile, the company’s consumer brands business launched variants in processed foods, beverages, spices and staples. The quarter saw the acquisition of Sosyo, Lotus Chocolate and launch of the company’s own fast moving consumer goods brand Independence brand. In December, Reliance Retail Ventures Ltd, acquired the India business of German retailer Metro AG, including 31 wholesale stores, for Rs2,850 crore in cash.

JioMart reported uptick in non-grocery category contribution and saw broad-based growth across all town classes. JioMart has strengthened its catalogue by 71% sequentially and expanded seller base by 83% during the period, the company said.

The fashion and lifestyle division delivered revenue growth of 13% year-on-year led by demand during the festive and wedding season. Business witnessed broad based growth across categories but notably men’s formals, women’s Indian wear, kids wear and footwear did well. Demand for winter wear was impacted due to delay in the onset of the winter season, it said.

The company’s fashion-focussed online portal Ajio expanded customer base by 33% and catalogue size by 62% year-on-year. The premium brands business saw a 38% during the quarter on account of higher footfalls and new store openings.

Additionally, the company’s grocery business where it operates formats such as Reliance Smart and Reliance Smart and others delivered revenue growth of 65% year-on-year led by broad-based growth in categories such as fruits and vegetables, staples, general merchandize, packaged food and home and personal care. “The grocery digital commerce business saw steady a revenue growth driven by festive demand and expansion of MilkBasket in new cities," RIL said in its earnings statement Friday.

“Our performance during the quarter demonstrates the underlying strengths and efficiencies of our business model that enable us to serve our customers with excellence at all times. We remain steadfast in offering the best shopping experience across all our stores and digital platforms to deepen our bond with our customers and vendor partners," said Isha M Ambani, Executive Director, Reliance Retail Ventures Limited.