Commenting on the retail business results for Q3 FY23, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited, said on Friday that retail business had another quarter of strong progress with more Indians choosing to shop at Reliance Retail stores.
“We are focused on delivering superior products and value to the customers while improving profitability,” he said.
Isha M. Ambani, Executive Director, Reliance Retail Ventures Limited, said, “Our performance during the quarter demonstrates the underlying strengths and efficiencies of our business model that enable us to serve our customers with excellence at all times. We remain steadfast in offering the best shopping experience across all our stores and digital platforms to deepen our bond with our customers and vendor partners.”
The business expanded its physical store network with 789 new store openings, totalling an area of 6 million sq ft.
The quarter recorded highest-ever footfalls at 201 million across formats and geographies.
The business continued to invest in bolstering its infrastructure capabilities by expanding over 2.2 million sq ft of warehouse space.
A workforce base of over 418,000 job creations and reskilling of people remained a cornerstone of Reliance Retail’s mission of inclusive growth.
Digital commerce and new commerce businesses continue to demonstrate strength of Reliance Retail’s business model and grew 38 per cent Y-o-Y and contributed to 18 per cent of the revenue.
Consumer electronics business excluding devices witnessed 45 per cent revenue growth Y-o-Y driven by higher footfalls and bill values during the quarter. Wider assortment, new launches, attractive offers and financing schemes in particular drove customers to shop at Reliance Retail stores and digital platforms.
The business saw double-digit growth across categories of phones, TVs, and appliances.
Owned and licensed brands sales were up 100 per cent Y-o-Y with increase in merchant base and increased wallet share from onboarded merchants.
Digital commerce orders were up 5x Y-o-Y driven by festive offers, category led campaigns, financing schemes.
New commerce continued its growth momentum and expanded its merchant partner base by 12 per cent Q-o-Q.
Fashion and lifestyle delivered a revenue growth of 13 per cent Y-o-Y led by festivals and wedding season.
Festive offers during Divali, Prathmasthami and Christmas gained traction with customers resulting in higher conversions and bill values.
Business witnessed broad-based growth across categories but notably men’s formals, women’s Indian wear, kidswear and footwear did well. Winterwear was impacted due to delay in the onset of the winter season.
AJIO, a fashion and lifestyle brand, continues to ramp up performance as it expanded its customer base by 33 per cent and catalogue size by 62 per cent Y-o-Y, making it a preferred online fashion destination for millions of shoppers across the country.
The premium brands business saw a 38 per cent growth Y-o-Y led by higher footfalls and new store openings. With a focus on strengthening omnichannel experience, business launched mono-brand websites for Tumi, Hunkemoller and Pottery Barn during the period.
The jewelry business grew on the back of wedding season and festive cheer, particularly on Dhanteras, which saw a revenue growth of 38 per cent Y-o-Y. During the period, business leveraged design capabilities to strengthen portfolio with new collection launches.
The lingerie business saw a revenue growth of 62 per cent Y-o-Y across the brand portfolio. Several new products were launched covering curvy styles, maternity range, minimisers, latch brief and more during the period.
Urban Ladder saw a revenue growth of 21 per cent Y-o-Y with growth in store performance and digital platforms capitalising on impactful events of ‘Full House Sale’ and ‘Very Merry Sale’. The business launched end-to-end interior design solution during the period.
Grocery business delivered robust revenue growth of 65 per cent Y-o-Y led by broad based growth in categories of fruits and vegetables, staples, general merchandise, packaged food and HPC.
Strong customer engagement through Bestival festive sale and premiumization of assortment improved customer experience and drove higher average bill value.
Grocery digital commerce business saw steady a revenue growth driven by festive demand and expansion of MilkBasket in new cities.
Grocery new commerce revenue growth driven by new merchant onboarding and efficient supply chain which resulted in superior delivery capabilities for merchant partners.
Pharma business saw a revenue growth of 93 per cent Y-o-Y led by growth across all channels.
During the period, consumer brands business launched several new variants in processed foods, beverages, spices and staples. Acquisition of Sosyo, Lotus Chocolate and launch of Independence brand would further strengthen the portfolio of the business.
JioMart continued its growth momentum with a robust uptick in non-grocery category contribution and broad-based growth across all town classes. JioMart has strengthened its catalogue by 71 per cent Q-o-Q and expanded seller base by 83% Q-o-Q during the period.
Reliance Retail also strengthened its product offerings with the acquisition of V Retail (Centro Footwear).