Reliance Retail Ventures Ltd (RRVL) is ramping up its quick commerce play by integrating modern trade stores and expanding beyond groceries to include electronics, fashion, and accessories in its hyperlocal delivery network, chief financial offcier Dinesh Taluja said during a post earnings call on October 17.
Taluja noted that Reliance is leveraging its vast store network and supply chain to accelerate deliveries across urban centers, positioning itself to compete with other established players. "We continue to add new sellers so that we provide the entire range to customers. We have also started quick commerce for electronics and accessories and we are also doing it for fashion," he said.
The move signals Reliance Retail’s intent to use its over 19, 000 modern trade stores such as Reliance Smart, Trends, and Digital as micro-fulfilment hubs. This integration allows faster order processing and localized deliveries, particularly in metros and tier-1 cities where density and demand are higher. "We have stores across the length and breadth of the country and we continue to leverage that footprint for omnichannel expansion," Taluja added.
RIL's quick hyper-local commerce platform, JioMart achieved a significant surge in customer acquisition, with 5.8 million new customers added, the company said adding that it represented a Q-o-Q growth rate of 120 per cent. As of now, JioMart has its services in over 3,000 stores of more than 1,000 cities.
The platform's seller base grew 20% Y-o-Y, and the live catalogue selection was further expanded to augment the customer choice. It extended its quick hyper-local deliveries to the electronics and accessories categories, promising 30-minute delivery across 10 cities. "We are also now aggressively investing behind brand building and create awareness of our very strong proposition which is unmatched prices, convenience and no headed charges," Taluja added.
Strengthening the luxury and fashion segment
Alongside its quick commerce ambitions, Reliance Retail is intensifying its focus on the premium and luxury segment, which continues to show strong growth momentum. Taluja said the company’s portfolio of global luxury brands and high-end Indian designer labels has performed “extremely well,” aided by a rise in affluent consumption and greater brand awareness among younger customers.
"Premium formats are growing significantly faster while we are seeing strong high single digit LFL growths in our stores. The premium formats are actually blocking double digit growths," Taluja said.
AJIO Luxe continued to expand its catalogue; its brand portfolio grew by 33% Y-o-Y, with the option count growing by 16% Y-o-Y. Meanwhile, RRVL is looking to expand beyond apparel into footwear, beauty, accessories, imitation jewelery to enhance their offerings.
The Jewels business delivered a steady performance amidst volatile gold prices, with the Average Bill Value increasing by 52% Y-o-Y. "Instead of investing more in new gold, the share of exchange has gone up substantially. So it used to be about 22 % earlier last year, which has now gone up to almost 33%. So people are basically recycling gold rather than investing in new gold because of the increase in prices," Taluja noted.
Separately, its FMCG business recorded 2x growh YOY in H1 with a topline of Rs 5,400 crore.
"All our main brands are Campa and Independence. Both had very strong market share gains and as we are expanding the supply chain, the volume growth is pretty substantial," Taluja added.
Robust results
Net profit rose to Rs 3,457 crore for the quarter ended September 30 from Rs 2,836 crore in the same period last year, the company said.
Consolidated gross revenue rose 18 percent to Rs 90,018 crore from a year earlier. Consolidated revenue from operations stood at Rs 79,128 crore, representing a 19 percent increase from Rs 66,502 crore in the corresponding quarter of the previous year.
Quarterly EBITDA came at Rs 6,816 crore, up 16.5 per cent from the year-ago period, driven by higher revenues with a favourable mix and improvement in store operating metrics.
"Reliance Retail delivered strong performance during the quarter, led by our relentless focus on operational excellence, investments in stores and digital platforms and festive buying across consumption baskets. GST rate changes will further accelerate consumption growth as consumers get the benefit of lower prices. Our success is a testament to our deep understanding of the consumer. We consistently innovate, from curating new collections to creating campaigns that connect with today's Indian consumer, and our focus remains on building brands that inspire and resonate across India," said Isha M. Ambani, Executive Director, Reliance Retail Ventures.
In Q2, the business expanded its store network with 412 new store openings, taking the total store count to 19,821 with area under operation at 77.8 million sq. ft.
Grocery and Fashion & Lifestyle businesses grew 23 percent and 22 percent, respectively, led by festive buying. Consumer Electronics delivered 18 percent growth aided by GST rate reduction and new launches.
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