Reliance Retail sees 3.5% revenue decline amid weak demand in fashion

Reliance Retail said weak demand in the fashion and lifestyle business and calibrated approach to improve margins in its wholesale business hurt revenues which fell 3.5% during the second quarter ended September. This is the first instance of a revenue decline for India’s biggest retailer except during the pandemic when covid led restrictions forced them to shut stores temporarily.

Reliance Industries’ retail division, which runs over 18,946 stores across groceries, consumer electronics and apparel, posted revenues from operations of Rs 66,502 crore in the three months to September, with net profit at Rs2836 crore, a 1% increase from a year ago. Gross revenue fell 1.1% to Rs76,302 crore.

Reliance said its unique omni-channel retail model enables the business to service a wide range of requirements of a vast, heterogenous customer base.

“The retail business continues to partner with renowned domestic as well as global players, expanding its basket of quality product offerings. The focus on strengthening our retail operations will help us rapidly scale-up this business in the coming quarters and years and sustain our industry-leading growth momentum,” Mukesh Ambani, Chairman and Managing Director, Reliance Industries Limited, said.

The company opened 464 new stores during the quarter, and now has 79.4 million square feet of retail space. Digital and new commerce accounted for about 17% of total revenue. The company saw 60% growth in consumer electronics while JioMart is scaling up quick commerce pilot by serving customers through its own store network, it said.

“Reliance Retail continues to make investments in technology and infrastructure to build a strong foundation for future growth and maintain market leadership. We continue to strengthen our customer proposition with innovative products that span everyday essentials to premium offerings,” said Isha Ambani, executive director, Reliance Retail Ventures Limited. During the quarter, Reliance Retail entered into exclusive partnerships with Israel-based Delta Galil to expand presence in lingerie and activewear categories and also launched British brand ASOS in India