Reliance Retail Revenue Grows 19% in Q3-FY2015

Reliance Retail posted 19% revenue growth in Q3FY15 and continued its focus on enhancing profitability. Reliance now operates 2,285 stores across 166 cities. Accelerated store openings and LFL growth of up to 19% across formats aided the top-line growth in a quarter which is heavy on festive sales. It has emerged as the largest retail chain in the country and is looking at judicious expansion in focus retail formats. Below are key highlights of company’s performance in Q3FY15.

Reliance Retail added 279 stores over Q3FY15 taking total store count to 2,285. The electronics segment witnessed the highest store additions, followed by the fashion & lifestyle segment. The company has rapidly scaled up the new digital format – ‘Digital Express Mini’ – smaller sized stores offering mobility and communication products and solutions and easier to scale up in smaller towns. With over 900 stores for the digital format, it is now the largest mobile phone retail chain in the country. Post a brief period of consolidation, value format witnessed 14 new store openings in Q3. Jewellery format store count remained flat q/q at 53. Reliance Retail Store Count

Reliance Retail posted up to 19% SSSG across formats for Q3FY15. Total revenue growth during Q3 stood at 19% led by fashion & lifestyle (+34% y/y) and digital (+32%) formats as jewellery format witnessed a revenue decline of -7% y/y (aggravated by lower gold prices -12% y/y and closure of advance schemes). Value format registered 15% y/y revenue growth in Q3.

Reliance Fresh Direct (Grocery home service) is being piloted in certain areas and has seen encouraging initial consumer response. Reliance Market now operates 37 stores across 30 cities and has over 1.5mn Kirana (mom-n-pop) stores.