Reliance Retail, the retail chain by Reliance Industries Limited (RIL) is planning to come up with five new cash and carry stores in the next quarter across the country. The new locations have not been announced yet. The announcement came at the opening of its second Cash & Carry store called “Reliance Market” here in Ahmadabad. At present, there are two such stores operational by Reliance Retail, one is in Bangalore and another is in Ahmadabad.
Randall Guttery, CEO of Reliance Market, a subdivision of Reliance Fresh Limited, said “Right now, we have five additional stores that are coming out of the ground. They will come up in the next quarter.” According to the speculations, two stores will be set up in north, two in the west and one in the south of the country. Guttery did not divulge any further information casting competitive reasons. A cash & carry stores serves the professional customers instead of end-customers. This concept of cash & carry stores is based on self-service and bulk buying by registered customers. The customers of these stores are either from hotels, caterers, traders and other business groups. The customers in this situation has to make all the arrangements for purchasing and transporting the material, and it also removes the intervention caused by middle-men. Cash & Carry stores smoothens the business for both the parties involved.
Reliance Retail is currently focusing on making this new format of cash and carry stores work in the Indian retail market scenario and understanding the customer requirements. The idea is to slowly penetrate into the market. “We will first go slow. Once we make it work, then we will grow fast,” said Guttery.
A cash & carry store is affiliated with local traders and business owners. Reliance Market in Ahmadabad has over 108,000 business partner members which include roughly 17,000 local kirana traders. This store is doing really great and is “magnificently successful” as Guttery quoted.
In the Reliance Market located in Bangalore, there is a collection of over 8,500 products that comprise of both-food and non-food products. Till date, 85,000 local business traders have enrolled with the store. This store caters to the needs of to all sizes of business owners whether it is a local kirana trader, a small business owner, or a hotel or restaurant owner. Reliance Market brings the regional, national, and international brands under one roof at affordable wholesale prices.
Apart from this Reliance Retail is supposed to receive an investment of over 3,800 crore from RIL for its rapid growth and expansion. It is successful because it gives better returns to both manufacturers as well as consumers in quality and quantity aspects, simultaneously.