Reliance Retail, a subsidiary of Reliance Industries, has achieved a significant milestone in the fiscal year 2023. The retail giant crossed a billion transactions, marking an unprecedented growth in its operations. This achievement is backed by a robust registered user base that has grown to 249 million, the company said in its annual report.
For such growth, the company attributes its expansion strategy. In FY23 alone, it added 3,300 new stores, bringing the total count to 18,040 stores spread across 65.6 million square feet. This expansion is not limited to urban areas; Reliance Retail is making strides into tier two and three markets, thereby broadening its reach and customer base.
“The business crossed the milestone of 1 billion transactions in FY 2022-23, up 42 per cent Y-o-Y. Stores recorded footfalls of over 780 million, which were up 50 per cent Y-o-Y,” said Reliance Industries’ annual report.
Reliance Retail’s growth is not confined to physical stores. It has been ramping up its digital commerce and new commerce businesses, contributing significantly to its overall revenue. Brands like Ajio and Netmeds are scaling up rapidly, enhancing the growth of the retail segment. The company’s new commerce business has seen a fast-paced expansion with over 3 million merchants partnering with their platforms.
Investments in supply chain infrastructure have been a priority for Reliance Retail. The addition of 12.6 million sq ft of warehouse space during the year underlines its commitment to deepening warehousing and fulfilment capabilities. This investment is expected to boost operational efficiencies and improve customer experience.
“Investments in boosting supply chain infrastructure remained a priority to deepen warehousing and fulfilment capabilities with the addition of 12.6 million sq ft of warehouse space during the year,” it said.
The business also expanded its product basket through acquisitions and partnerships at both local and global levels like Metro, Campa Cola, GAP, Pret A Manger, Lotus, Sosyo, Maliban and Toffeeman.
Reliance Retail’s future plans include scaling up its digital commerce and new commerce businesses by offering a wider catalogue and superior value. It also plans to continue expanding its reach into smaller tier II & III markets by adding more stores. Strategic acquisitions and partnerships with international and Indian brands are also on the cards.
Reliance Retail has best-in-class technology adoption for driving operational efficiencies. It is using “Artificial Intelligence/Machine Learning driven decision-making models help in improving customer experience,” it said.
Over its strategic priorities, the retail business of billionaire Mukesh Ambani-led Reliance Industries will continue to expand its reach into the smaller tier II & III markets by adding more stores in those regions.
Over the retail sector, Reliance said factors such as favourable demographics, rising income levels, a rising share of urbanisation, access to better education and aspirational lifestyle are driving consumption growth in the country.
“These trends are a force multiplier for the Indian retail sector which currently stands at over USD 800 billion and is expected to grow at 11 per cent CAGR to become a USD 2 trillion market by 2030,” it said.
With inputs from PTI
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