While India’s retail sector will remember March 2020 as a time of extreme pain as the country was put under a lockdown, the same might not be the case for Reliance Industries Ltd’s retail arm.
While India’s retail sector will remember March 2020 as a time of extreme pain as the country was put under a lockdown, the same might not be the case for Reliance Industries Ltd’s retail arm. The company has reported its highest ever grocery store sales in the month of March with purchases outshining the record of the Diwali month performance despite logistical challenges, the company said while announcing its Q4 results. “In a response to the lockdown situation, all Grocery stores were kept open for extended hours to provide access and availability of essential products to customers in these trying times,” it said.
Further, RIL also helped kirana stores via its Jio Mart Pilot initiative. As Reliance Retail continued to offer services and supplies to partner kirana stores even during the lockdown period, mom and pop stores witnessed an increase in daily orders by four times. RIL had launched the JioMart platform in select locations recently while the countrywide launch is also on charts. The JioMart platform offers connectivity to its users with their neighbourhood kirana stores. The company also recently tied up with Facebook to leverage the latter’s technology and reach to access a wider audience.
Reliance Retail has expanded its store footprint, both region wise and also in categories. It has added 496 stores in the January-March quarter and 1,553 stores during the year. This has taken the overall count of RIL’s retail stores at 11,784. Reliance Retail sells products across categories such as jewellery, clothing and apparel, footwear, and groceries. Its retail business has also witnessed a revenue rise of nearly 25% on-year basis.
Meanwhile, Reliance Retail’s non grocery business was impacted by the nation-wide lockdown. However, RIL’s other consumer facing business Reliance Jio reported net profit at almost triple from last year’s profits. Reliance shares traded at over 2% higher before the announcement of the quarterly results.