Reliance Retail on Thursday reported a 73.6% year-on-year jump in its revenues to Rs 11,571 crore during April-June quarter, led by growth across formats like Reliance Smart, Reliance Trends, Reliance Digital among others. During the period profit before depreciation interest taxes (PBDIT) increased 65.8% to Rs 398 crore, the company said in a statement.
During the quarter, Reliance Retail added 18 stores across various store concepts, like Reliance Trends, Reliance Smart, Reliance Digital, Reliance. At the end of the quarter, the company operated 3,634 stores across 703 cities with an area of over 13.8 million square feet. During the previous quarter (Jan-March), Reliance Retail had added 63 stores across various store concepts and 3,616 stores across 702 cities with an area of over 13.5 million square feet.
The company plans to add around 500 outlets across segment in 2017-18. Reliance Retail added 371 stores across various store concepts during FY 2016-17. The company opened the 33rd Hamley’s store in India making it the largest toy retail chain in the country and it operates more stores in India than the total number of Hamley’s stores across entire Europe.
Reliance Fresh and Smart stores undertook productivity improvement initiatives and witnessed strong uptake in same store sales growth. Reliance Retail, operates the largest cash and carry chain in the country through Reliance Market with 41 operational stores. Reliance Market continues to focus on innovation and planning, better assortment and channel development.
These initiatives have resulted in strong growth in Kirana and HoReCa customer segments, the company statement said.
Rajat Wahi, partner Deloitte, said, “Most retailers have been focusing on improving profitability and have shut loss making stores while adding new stores at more viable locations. The company has huge expansion plans going forward and overall the retail sector is expected to perform well.”
Retail Industry in India constitutes over 10% of the country’s Gross Domestic Product (GDP) and around 8% of the employment and is valued at $672 billion.
Globally, India is fifth-largest global destination in the retail space and is growing at a rate of 12% per annum, according to a CARE Ratings report.