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RIL
launches first Reliance Fresh retail store in Hyderabad
30 October 2006
Just five months after Mukesh Ambani spelt out his retail
plans,
Reliance's retail foray has moved at breakneck speed to open its first
store in its fresh food format- Reliance Fresh in Hyderabad. CNBC-TV18
takes a look at the new store. Reliance's Rs25,000 crore retail foray
is being pitched as a friendly neighbourhood store. Dominated by fresh
produce, dairy and bread, Reliance Fresh is a compact 2000 sq ft store.
Gunender Kapur, president and CEO, Foods Business, RIL, says, "In this
format the focus in on fresh fruits and veggies and staple products
that consumers buy very frequently from the shop." The efficiency of
Reliance's much talked about farm to folk supply chain is being put to
test with this retail launch. This particular store is directly
procuring from the farmers of Andhra Pradesh, Karnataka and Tamil Nadu
giving it a quality and pricing advantage, something that Reliance
hopes will fuel its success. Private labels across multiple categories
are expected to drive
Reliance's retail formats. And with this new store comes the company's
food brand 'Reliance Select'. Kapur further adds, "At this point of
time we have displayed in stores private labels in staples like rice,
dhal, spices etc. so we have got a wide range of categories in which
Reliance Select will be available, and in fullness of time we will get
into other categories." Next in line is Fresh Plus —
Reliance's
second retail format likely to be launched next month that will also
house a pharmacy, and section for apparel and consumer durables. And
six months later, Reliance hopes to roll out its hypermarket format
— 75,000 square feet of multiple brands of apparel, FMCG,
groceries and white goods. For now, the spotlight remains on Reliance
Fresh — 40 similar stores are being planned in Hyderabad, 11
of
which will open their doors to customers on November 3. After ITC's
Choupal Fresh and Landmark's Max Retail stores, Reliance joins the list
of retailers who chose Hyderabad to test waters. The city offers real
estate at a price that doesn't quite pinch |
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