Wednesday, December 13, 2006

Reliance Retail to focus on Chennai next

After opening its first retail stores in Hyderabad, Reliance Retail is now focusing on opening stores in Chennai, where it will be opening 10 stores in densely populated residential areas around December 25, 2006. Most stores will be in the 1,500 to 3,500 sq ft range. The company also plans to open 6-7 stores in Jaipur, Delhi and Mumbai around the same time. Reliance hopes to have significant presence in 6-7 states by March 2007.

The company has hired the CEO of another retail company as CEO of its B2B business, and is likely to hire another 30 expatriates as consultants. So far 15 expatriates from companies such as Wal-Mart, Carrefour and Dairy Farm have already been hired and are working on its supply chain, operations and planning.

Its first 10 stores in Hyderabad are bringing in Rs 100,000 per day, selling over 6 tonnes of fresh fruits and vegetables a day. The company had anticipated average sales of 4-5 tonnes per day. The company is planning to open at least 30 more stores in Hyderabad alone.

Reliance has pushed back its plans for its other two formats, Reliance Fresh Plus and its hypermarkets, due to the success of its Reliance Fresh stores. It will now open its first hypermarket, Reliance Mart in Ahmedabad in March 2007, instead of this December as earlier planned.

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