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Reliance Industries chairman Mukesh Ambani’s deal-making
spree to get the best domain expertise in the retail
sector is poised for the big one now. Reliance Retail (RRL), is locked
in ‘substantial’ discussions to float an equal
joint venture with iconic UK fashion
retailer Marks & Spencer (M&S) for apparel, gourmet
food and cafes, multiple sources familiar with the situation said.
The deal, slated to be clinched in the next three weeks, would see the
UK retailer bringing in new formats like food and cafes into india.
M&S’ core business — apparel and lingerie
— is already operational in the country.
According to a source close to the deal, the gourmet food format is
likely to be integrated with Reliance Fresh “wherever
possible,” (upmarket localities) as a shop-in-shop format.
This would help M&S get immediate scale in food business. There
are 491 Reliance Fresh stores that sell food, FMCG and fruits and
vegetables and this figure is likely to touch 1,400 by the end of next
fiscal.
“The implications of this particular JV are much deeper.
It’s much more holistic in nature and therefore taking long
to seal,” the source added.
The $16-billion M&S, operating in the country through a
franchisee arrangement with Planet Retail since 2001, is in the midst
of charting a new India strategy aimed at accelerating expansion in the
domestic market. It recently slashed prices by 20% to attract more
footfalls in the stores and taking prime space in malls to open more
stores. more...........
Reliance Retail opens its new
Mart in Jamnagar
FEB. 1 2008 In an event devoid of its characteristic pomp, Reliance
Retail on Wednesday opened its second retail outlet Reliance Mart in
Jamnagar
The Jamnagar outlet is spread over 83,000 sq feet and after the second
phase, the total area will be close to 3 lakh square feet, almost
double of its Ahmedabad stores which has come up over 1.65 lakh square
feet.
The company is keen to take faster strides in the growing retail sector
in Gujarat by opening numerous hyper marts including one in the IPCL
campus at Vadodara. In the first phase, only the shopping floor has
been opened, while the other two floors are still under construction.
In future, Reliance Mart will have more than one lakh product range.
“Currently we have 10,000-12,000 employees from Reliance and
the staff strength will touch the 35,000 level once the new refinery is
complete. We also expect big footfalls from the employees of the Essar
township who live just five kilometre away from our
hyper-market,”
“Apart from the Reliance employees, the location of the mart
at
the national highway will attract traffic that goes towards Dwarka and
other adjacent places,”
Reliance
Retail today ushered in a new retail culture in the
National Capital Region by opening nine western-style food stores as it
hoped to become the preferred supplier of push-cart vendors and kirana
stores. The launch of nine ‘Reliance Fresh’ stores
in
Noida, Greater Noida, Gurgaon, Ghaziabad and Faridabad took the number
of such outlets that sell fruits, vegetables, groceries and dairy
products to 49 in the country with an investment of close to Rs 3,000
crores FOR MORE INFORMATION contact or write us:
New
Delhi, India, January 30, 2007 - With over 40 Reliance Fresh stores
already launched in Chennai, Hyderabad and Jaipur, Reliance Retail
began its assault of the National Capital Region market with the recent
opening of nine new stores in Ghaziabad, Noida, Faridabad and Gurgaon.
The company is targeting to open 100 more Reliance Fresh stores in New
Delhi alone within four months, and a 1,000 new stores in 35 cities
nationwide by the end of the year with a built-up area of over 4
million sq.ft. An investment of Rs.8,000 crore is envisaged for the NCR
region alone.
Reliance Fresh stocks fresh fruits and vegetables, staples, fast moving
consumer goods and dairy products. The stores are already selling over
1,000 tonnes of fresh produce daily and also 250 categories of
commodities. The company is approaching farmers directly for the
procurement of produce, seeking to reduce the 40% wastage that occurs
through the traditional supply chain.
one loyal customer on every
square foot:
Mukesh Ambani-led Reliance group's retail juggernaut seems to be
gaining scale uninterrupted, despite hiccups like political protests,
going by the success of its the customer loyalty programme.
Reliance Retail, within the four months of rolling out its first store
in November 2007, has touched an outlet base of 500 stores in various
formats, spanning three million square foot of occupied space in
various cities.
This expansion of the retail space has been achieved alongside the
company's customer loyalty programme -- Reliance One -- which has also
touched a membership base of three million customers.
The average of one loyal customer per every square foot of retail space
is probably the highest and fastest loyalty programme amongst all the
retail companies in India, according to industry people who did not
wish to be identified.
Reliance Retail, a 100 per cent subsidiary of the country's most valued
firm Reliance Industries Ltd, is targeting to make its loyalty
programme one of the top 10 loyalty card base in the worldwide retail
sector by 2012.
Reliance One, a pre-paid facility which allows customers to start using
it right from the point of purchase, is valid across all the nine
different formats of Reliance Retail stores.
Building on the success of Reliance One, the company is also seeking to
become "the distributor of choice" for all financial services companies
with an all-India footprint at every product level, said an industry
source
The Reliance Fresh retail rush is on. The
company opened six more stores at Saket, Dilsukhnagar, Bowenpally,
Vengalraonagar, Miyapur and Uppal, taking the total to 17 in the city.
According to company sources, "It is an ongoing process and only six
more stores have been opened. But when we reach a substantial figure,
we will definitely come out in a big way."
The sources said that the 17 stores put
together have been averaging around Rs 15-16 lakh daily and around
800-1,200 footfalls daily.
The six stores with a size of 2,500-4,000 sq
ft each made around Rs 6.5 lakh in the first one week, he added. In the
first phase, the company opened 11 pilot stores on November 3, offering
fresh vegetables, fruits, flowers and grocery items. It plans to touch
a figure of 40 stores in the twin cities in the coming days.
VISAKHAPATNAM :
Reliance Retail Ltd., on Monday opened its first set of three pilot
stores in the steel---port city at China Waltair, Murali Nagar and
MVP Colony.
Talking to media
persons at the China Waltair store on the occasion, its' customer
operations head, K.S. Venugopal, said Reliance Fresh would carry fresh
fruits and vegetables, staples, top-up grocery, non-food items and
dairy products and a whole lot of other categories at very competitive
prices. All the stores opened in the city have an average area of about
1,800 sqft and an average of about 20 sales associates attending to
customers in each store open from 8 a.m. to 9 p.m. on all seven days of
the week.
"I am glad we are
opening about 40 stores in Andhra Pradesh alone by this March end. By
June, we hope to open between 75 and 100 stores in the State on the
Fresh format. There are 21 stores in Hyderabad, and seven in Vijayawada
and Guntur bringing the total to 56 excluding the three opened here,"
he said.
Vast
stock
Replying to
questions, Mr. Venugopal said all the stores there were roughly 200
varieties of fruits and vegetables at the stores . The stock value
would be to the tune of Rs.25 lakhs on the average. Apart from the
fresh vegetable and fruits procured within 50 km. of the stores, there
were also many varieties from elsewhere in the State and country and
imported apples from the US, grapes from California, and other parts of
the world, he said.
On the forenoon of
the inaugural day, the sales were to the tune of Rs.2 lakhs in all
three stores, chief manager (Corporate Communications) of the company
Sreenath N.C. said. The vegetables and fruits at China Waltair stores
were fresh and inviting and some were priced less than city market
rates. A striking example is Bangalore black grapes that were sold at
Rs.19 a kg. The seedless black grapes were sold at Rs.42 a kg.
Competitive
rates
And vegetables too
were at highly competitive rates, with onions sold at 50p less than
open market rates at Rs.15.50 a kg. for a quality variety. Cabbage was
priced Rs.6.90, cauliflower at Rs.6.75, cu-ber Rs.8.90, beetroot
Rs.9.90, yam (kanda) Rs.8.90, carrot Rs.10.50, green chillies Rs.15 and
ash gourd Rs.7.70 for a kg. There are also quite a few varieties of the
same vegetable - like in the case of brinjal long priced Rs.12.50,
brinjal giant black Rs.25, brinjal purple Rs.12.50 a kg. And, baby
(small round ones) potato is sold at Rs.7, potato economy Rs.5.50 and
potato premium at Rs.6.50 a
kg.
Reliance
Fresh is
the retail chain division of Reliance Industries of India which is
headed by Mukesh Ambani. Reliance has entered into this segment by
opening new retail stores at Hyderabad on 3 November 2006. Reliance
plans to invest 25000 crores in the next 4 years in their retail
division and plans to begin retail stores in 784 cities across India.
Reliance
Fresh
recently (24th Jan, 2007) opened 12 "Fresh" outlets in Chennai
increasing its total store count to 40. Reliance is still testing its
retail concepts by controlled entry beginning in the southern states.
The company is planning on opening up 6 stores in Bangalore
by
the middle of February (2006) and an additional 7 stores by the end of
February. The store’s size would vary from 1,500 sq ft to
3,000
sq ft, which will stock fresh fruits and vegetables, staples, FMCG
products and dairy products. Each store is said to be within a radius
of 1-2 km of each other, in relation to the concept of a neighbour
store. However, this is only the entry roll-out that the company has
planned. Bangalore is said to have 40 stores in all by the end of the
year.
