Reliance Retail recorded continued growth momentum and strong profitability in the second quarter of the current financial year. Revenues for 2Q FY16 grew by 22% yoy Rs.5,091 crore from Rs.4,167 crore. All format sectors grew through store additions as well as like for like growth ranging up to 16%. The business delivered PBDIT of Rs.210 crore in 2Q FY16 as against Rs.186 crore in the corresponding period of the previous year.
Reliance Retail expanded its reach with a net addition of 110 stores during the quarter. As on 30th September 2015, Reliance Retail operated 2,857 stores across over 250 cities in India.
Value Formats continues to be the trusted grocery retailer that offers fresh fruits and vegetables, dairy, processed food, FMCG and other items of daily use. The quarter witnessed one of the strongest Independence Day sales for the Value Formats, outpacing the industry growth during the period.
Reliance Market continues to maintain leadership position while serving over 1.7 million members across 36 cities. Contribution of private label sales to overall sales increased to 14% from 8% in the same period last year.
Reliance Digital with its network of 1,379 stores across over 225 cities commands market leadership and offers a differentiated value proposition, superior in-store experience and extensive product assortments. Leveraging on strong sourcing and product development competencies, Reconnect is being established as a national brand differentiated by product innovation, superior quality and great value.
The Fashion and Lifestyle sector continues to deliver strong performance in the quarter. Reliance Trends added 24 stores during the period. Trends launched Point Cove, a kids wear brand in partnership with Cherokee Global Brands.
Reliance Retail grew its presence through its partnerships during this period. The JV with Marks and Spencer continued expansion and witnessed strong sales growth from existing stores. The JV business has been awarded the “Most Admired Retailer of the Year – Employee Practice by IMAGES Retail Awards 2015.
Reliance Brands strengthened its presence through the launch of Juicy Couture, a contemporary casual wear and dress clothing brand from USA.
During the period, Reliance Brands announced an exclusive long term partnership with Centaurus lifestyle brands for retailing Ed Hardy innerwear brand in India.
Reliance Retail 2.0 initiatives encompassing fashion & lifestyle ecommerce, development of market place platform and building distribution ecosystem for Jio devices are on track and gearing up for rollout in a staged manner.
Reliance Retail will soon launch its own brand of 4G LTE smartphones under the brand ‘LYF’. The brand built on the premise of unmatched user experience will offer high performance handsets that deliver a true 4G experience comparable to the best in the world. LYF range of smartphones with superior features like Voice over LTE (VoLTE), Voice over Wi-Fi (VoWi-FI), HD Voice and HD quality video calling will enable users to experience a new digital life.
LYF phones will reach consumers across the country through one of the widest distribution and retail network for smartphones. The devices will soon be available at multi-brand outlets (MBOs) and modern trade including Reliance Retail stores across India
These strategic initiatives would augment our reach to customer and drive growth.
Source: India Infoline News Service