New Delhi, Dec 16: Stiff opposition by traders in Uttar Pradesh, the national capital region (NCR) and Orissa, on its fruits and vegetables business has not put Reliance Retail's expansion plans in the cold storage, rather, Mukesh Ambani-led retail giant is planning to come up with four new formats--Reliance Home Improvement, Reliance Business-to-Business (B2B), Reliance Furnishing and Reliance Furniture--in another one year.
''We will continue with our expansion plans and in another 12 months we will add four new formats to our current portfolio of eight formats,'' Reliance Retail President and Chief Executive (Retail Operations and Strategy) Raghu Pillai told the sources. Home furnishing and furniture vertical appears to be the next area of growth for some of the other leading retailers of the country who are cashing in on this segment, contributing a large amount to the total sales turnover.
Recently, Ebony, a leading lifestyle retailer in India, joined hands with Gautier, a well-known French furniture brand, to set up home adornment stores in India. These stores offer consumers latest themes in contemporary style of furniture along with home furnishing and home decor products.
Reliance Retail is supposedly in talks with 10 billion dollar Hong Kong retail giant Li&Fung to form a deal to source for its private label business. If it works out, the deal would cover soft goods, including furnishing products.
At present, Reliance Retail runs around 400 stores across the country in eight formats: Reliance Fresh (vegetables and fruit, besides grocery), Reliance Mart (hypermarket), Reliance Digital (consumer electronics) , Reliance Trends (apparel), Reliance Jewel, Reliance Wellness, Reliance Footwear and Reliance Timeout.
The company plans to invest five billion dollars in retail expansion in the next four years and have a footprint in excess of 600 cities across the country.