Reliance Retail has decided to temporarily shut down its Centro department store chain, which was launched in September 2022 after acquiring leases from Future Group's Central stores. The decision to close 80 stores within two years is part of a strategic repositioning to focus more on in-house brands like Azorte and Yousta, as well as expanding partnerships with global brands.
Reliance Centro was launched in September 2022 after Reliance Retail acquired leases from Future Group's Central stores. Initially, Reliance took over leases at multiple locations where Future Group had surrendered properties.
The closures are aimed at remodeling the store format to prioritize Reliance's own brands and a shop-in-shop model.
Brands have been asked to retrieve their inventory and fixtures from the affected locations.
Centro, which offers nearly 450 local and international brands, competes directly with Dubai-based Lifestyle International and Raheja's Shoppers Stop in the department store format.
The move comes in response to changing consumer spending patterns and a slowdown in retail sales growth.
The company plans to introduce a new shop-in-shop model, which will allow for a more streamlined and efficient retail experience.
Reliance Retail's new shop-in-shop model is designed to enhance the shopping experience by integrating in-house brands and global partnerships within existing retail spaces. The model prominently features Reliance's own brands, such as Azorte and Yousta, providing customers with a wide range of exclusive products.
The shop-in-shop model also includes international brands like Gap and Superdry, which Reliance has partnered with or acquired.The redesigned stores will have a more streamlined layout, making it easier for customers to navigate and find products.
By integrating multiple brands within a single store, the model aims to offer a more diverse and convenient shopping experience. The model is expected to improve operational efficiency by optimizing space utilization and reducing the need for separate standalone stores for each brand.
The presence of multiple brands in one location can attract more customers, increasing footfall and sales.
Further, Reliance can reduce operational costs associated with maintaining multiple standalone stores by consolidating brands into a single space.
Offering a variety of brands and products in one location can enhance customer loyalty by providing a one-stop shopping solution.
This strategic shift is part of Reliance Retail's broader plan to adapt to changing market dynamics and consumer preferences, ensuring long-term growth and success.
This repositioning is expected to help Reliance Retail streamline its operations and better align with market demands.
Reliance Retail reported a 3.5% decline in revenue for the quarter ending in September 2024, attributed to weak demand in the fashion and lifestyle segments.
The retail market has seen a slowdown in growth, with consumer spending becoming more cautious. This has impacted sales, particularly in the fashion and lifestyle segments.
Advertisements