Reliance Retail shuts over 20 stores to cut losses

The company had shut more than 100 stores, primarily in value (food & grocery retailing) and jewellery formats in the year 2015.

Reliance Retail has shut more than 20 stores in the last nine months mainly in the value (food & grocery retailing) and jewellery formats, as the company looks to reduce losses by shutting unprofitable stores, reports a business daily. 

The company had shut more than 100 stores, primarily in value (food & grocery retailing) and jewellery formats in the year 2015.

The value format is the biggest revenue generator for Reliance Retail, contributing approximately 54% to revenues of INR 17,640 crore in the last fiscal year. 

As of 31st December, the company had 597 stores operational under Reliance Fresh, Reliance Mart, Reliance Market among others. 

According to Reliance Industries' annual report, Reliance Retail had 616 stores as of March 2015 in the value and other formats spread across 5.42 million square feet.

Reliance Retail is also planning to launch a new format called Reliance Smart in the next few months, says the financial newspaper.

The new format Reliance Smart will comprise clothing, accessories, among others and will start from a size of 7,000 sq ft up to 20,000 sq ft.