Rel Retail volumes down 20-25% this year

In the retail space, it's not just retail giant Wal-Mart that has cut down on its procurement, Reliance Retail seems to have cut down on its sourcing. As much as 25% of its sourcing from suppliers has been cut down.

 

Here is a transcript of Priyanka Ghosh's comments on CNBC-TV18. Also watch the accompanying video.

 

Many global have cut down procurement from small and medium suppliers based in India. Today, it is also holding true for Indian retail companies. From sources that are suppliers to Reliance Retail, we learn that its volume of business has come down by 20-25% this year. We contacted Reliance Retail for a response and they say: "Reliance Retail has operations in 60 cities spanning 14 states with extensive supplier network across categories. Order or re-order are operational decisions and taken by the supply-chain management team based on the requirement for the particular product or category."

 

A Rs 200-crore company based in South India bagged its first order from Reliance Retail last year. The company till June delivered orders for about Rs 10 lakh, which came down to Rs 3 lakh in September and Rs 1 lakh in October and no order has been placed yet for November.

 

Another company in Kerala says its volume of business with Reliance Retail has decreased by 20%. For the past two months, it has had no orders.