Reliance Retail Expands Non-Food Trading Area to Boost Margins

Reliance Retail has increased its non-food and general merchandise trading space by 50% to enhance margins and support its hyper-local e-commerce platform Jiomart. The retailer aims to double its business within 3-4 years, driven by expanding premium offerings and strategic operational improvements.

Reliance Retail, the nation's leading retail chain, has expanded its trading area for non-food and general merchandise by 50% in its grocery stores. This strategic move is aimed at enhancing profit margins.

The company is also leveraging its e-commerce platform Jiomart to further its hyper-local ambitions by connecting Smart and Smart Bazaar stores. This will offer a broader variety of products to consumers, an industry insider revealed.

Reliance Retail's EBITDA margin from operations improved to 8.2% in the June quarter, highlighting the efficacy of these strategic changes. The firm is also poised to compete with quick-commerce platforms through enhancements in technology, supply chain, and distribution capabilities. An email to Reliance Retail for comments went unanswered.

(With inputs from agencies.)