Reliance goes shopping; Looking for quick growth?

RIL_logoWith 54 outlets of Gujarat based Adani Super Markets almost already in its pocket, Reliance Retail, according to media speculation, is looking at acquiring smaller players in the modern retail space.

Reliance Retail, it may be recalled, has so far rolled out 17 ‘Reliance Fresh’ neighbourhood, convenience stores, in two clusters of 11 and six stores, in Hyderabad.

The need for quick growth has become all the more urgent after announcement of the entry of Wal-Mart with Bharati in India. Bharati is preparing to roll out several hundred stores across the country beginning August, 15, 2007. The inorganic growth route would suit Reliance’s Rs. 25,000 crore retail initiative most.

The name of Subhiksha, among possible targets, keeps cropping up every now and then despite Subhiksha having flatly denied any such possibility several times in the past. Subhiksha, it may be recalled, is expanding at a scortching pace through what it likes to call as a carpet bombing strategy in which it simultaneously opens a number of stores in a particular geography. According to the plans already announced, Subhiksha will have up to 700 stores up and running by March, 2007 and up to 1,200 stores by March, 2008. If true, acquiring Subhiksha, can give Reliance a shot in the arm as Subhiksha has acquired a large presence across various states in the country.

Another name doing the rounds is that of Landmark, which is the book and music store chain owned by Trent– a Tata group retail arm.

Advertisements

3 responses to “Reliance goes shopping; Looking for quick growth?

  1. From whatever we have seen as consumers of subhiksha as a chain, they sure have done their homework well. They dont have big stores but whatever they have is good and the prices are really as per their promise. All the best to them. what surprises me is why dont they make as much noise about their plans as Reliance does. reliance opened 11 stores and the whole world knew about it. and the stores themselves are avg. But these guys have opened some 400-500 stores and still not talking. this is what real character is all about!

  2. Though Subhiksha retail chain outlets have left a mark by their discounted pricing, but the service of their staff is not up to the mark. I have faced a lot of problems regarding their service on the aspect of replacement of defective products.
    I am in search of the address and contact numbers, including the fax numbers, of Subhiksha’s head office to lodge my complaints. Can someone help with the information ?

  3. I belong to a Rural Area of Sonepat.
    It’s Ok for retail industry to grow day after day but in my views, it should start from the rural areas and not from the metro cities.
    It will give more popularity and will be more beneficial for the companies. Companies will be able to also buy raw material/ vegetables from the villagers.
    If any company interested to open their chain in sonepat, I have very good plan for that.

    samrat

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s