Reliance Retail on backfoot

Growing political opposition and revolt from local fruits & vegetable vendors, Mukesh Ambani’s Reliance Retail is thrown out of gear and has to change its strategy for launching more Reliance Fresh stores in the country.

Currently, the company has 170 Reliance Fresh stores across the country, and is giving a second thought to launch more stores in politically sensitive states of Kerala, West Bengal and Jharkhand. Instead, it is planning to launch Reliance Super stores in these states.

Reliance Super stores are large supermarkets having an area of 4,000-10,000 sq ft and stocks grocery, stationary, pharma, apparel and leave out fruits & vegetables. In other words it can be best described as a mini hypermarket.

Reliance is also partnering with loval fruits and vegetable vendors in cities where it has is stores by getting them on company’s payrolls and also by giving them products on credit and eventually sharing the profit.

With Reliance having to rework its retail strategy on account of soci-political factors, could impact further growth and investment in the sector and prevent foreign retailers in entering the organised retail business.