Reliance Retail bounces back to pre-COVID levels in July-Sept quarter

After lagging in its previous performance for over a year, the business of the country's largest retailer Reliance Retail rebounded to pre-COVID levels in the July-September quarter. A rapid expansion of its physical and online presence boosted its performance.

As consumer sentiments improved amid festivities, followed by travel relaxations, its business improved. As a result, the company's fashion and apparels business, which was suffering since the start of the pandemic, bounced back to the pre-COVID levels. The consumer electronics and groceries business also continued to grow strongly.

According to Mukesh Ambani, Chairman and Managing Director, Reliance Industries, a sharp recovery in the retail segment boosted the group's financial and operational performance. "Reliance Retail continues to grow on the back of rapid expansion of both physical stores and digital offerings, resulting in healthy growth in revenues and margin expansion", he said in a post-earnings statement.

During the said quarter, the company entered into a master franchise agreement with the US-based convenience store major 7-Eleven Inc and launched its first store in Mumbai. With its initial focus on the Greater Mumbai region, the firm's management has plans to expand the brands in other markets like Bengaluru and Delhi-NCR.

Reliance Retail also announced strategic partnerships and investments in Ritika Pvt Ltd that owns brands like Ritu Kumar, Label Ritu Kumar, RI Ritu Kumar, aarké and Ritu Kumar Home and Living and Manish Malhotra's eponymous brand.

Its consumer electronics stores recorded strong double-digit growth on a year-on-year basis, driven by improving operating environment, impactful activation and opening of stores on high-street destinations like malls. Its e-commerce platform for electronics continues to grow on the back of festive and big online days, category-focused events and new launches, the company said.

It extended the coverage to over 2,000 cities, with a focus on Tier-2 and smaller towns. It received more than half of the orders coming from these towns, the company said.

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