Reliance Retail to turn Adani outlets into speciality stores

Reliance Retail plans to transform the recently-acquired Adani Retail’s general purpose outlets into speciality stores such as jewellery, medicines, specs, home furnishing, telecom and even consumer electronic outlets.

Around 10-15 out of the total 26 outlets will be transformed into speciality stores in Ahmedabad alone. In Vadodara, Reliance will start operations with 10 outlets and subsequently increase the number to 16. The company also plans two mega outlets in Vadodara.

Reliance has already absorbed a few of the Adani Retail executives. However, many others have already left Adani to join other retail chains. While Reliance is yet to formally get possession of the Adani outlets, it is said to have shelled out Rs 170-190 crore for the deal.

The Adani group has already withdrawn its in-house brand ‘Advantage’ across segments such as food and detergents. It was selling the in-house brands exclusively through its retail outlets. “The size of Adani outlets is not large enough to convert them into Reliance Fresh.

The minimum area of Reliance Fresh stores is around 4,000 square feet while the outlets that we have acquired are mostly in the range of 2,000- 3,000 sq ft. So we have decided to create specialised stores in those outlets that will sell single product category,” a senior Reliance executive told ET.

Most of the 56 Adani outlets are located in Ahmedabad, Vadodara and Rajkot. Sources say half of the total outlets in the three cities will be specialty outlets. The outlets in smaller cities such as Anand, Nadiad, Mundra, Gandhinagar and Navsari will largely have smaller format Reliance Fresh stores.

The first Reliance Fresh outlet will be launched in March end in Ahmedabad, while the outlets acquired from Adani will be revamped and readied for launch by April end. It will also roll out its retail operations in Vadodara, Rajkot and Surat.

“All our retail outlets will have differentials in terms of service, offerings and prices. While these will be relatively smaller outlets, we are also searching for sites to develop large-format exclusive furniture stores in Ahmedabad,” said the executive.

Source : Economic Times