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Reliance Retail on Thursday reported a 47.42 percent decline in pre-tax profit at Rs 1,083 crore for the quarter ended June 2020, impacted by the coronavirus lockdown. The retail arm of Reliance Industries Ltd (RIL) had posted a pre-tax profit or EBITDA (earnings before interest, tax, depreciation and amortisation) of Rs 2,060 crore in the April-June quarter a year ago.
Revenue during the quarter was down 17.22 percent at Rs 31,633 crore as against Rs 38,216 crore in the corresponding period last fiscal.
“Against the backdrop of a challenging environment, where store functioning and digital commerce fulfilment was severely impacted by lockdown and restrictions (50 percent stores were fully shut, 29 percent partially operated), Reliance Retail clocked significant revenues of Rs 31,633 crore and EBITDA of Rs 1,083 crore in the quarter,” RIL said in an earnings statement.
“The performance whilst muted by the operating context, was well ahead of market,” it added.
During the quarter, the retail area operated by the company increased 26.1 percent to 29 million square feet as against 23 million square feet earlier.
“While store expansion remains a thrust for the business, with activity being largely suspended in the lockdown period, the business was able to open 69 new stores during the quarter,” it said.
Reliance Retail operates a network of 11,806 stores in over 7,000 towns.
“Overall, Reliance Retail’s 1Q FY21 performance is resilient considering the adverse operating environment. Notably, decisive actions are being taken across the breadth of the business to adapt and strengthen operating models/capabilities for a post COVID world,” it said.
During the April-June quarter, it witnessed 21 percent growth year-on-year across the operational businesses of grocery and connectivity.
Besides staples, categories such as hygiene products and packaged foods did particularly well leading to higher bill values, it added.
“While Consumer Electronics and Fashion and Lifestyle businesses were hit particularly hard by the cessation of activity during the lockdown period, as stores were closed for the most part of the quarter,” it added.
However, consumer electronics saw a strong recovery in May and June across the stores that were allowed to open.
“While footfalls remained much lower than normal, the business witnessed higher bill values and better realisations,” it added.
Within fashion and lifestyle, AJIO was leveraged to drive revenues in apparel and footwear.
“AJIO’s performance during this period has been impressive as it doubled business and delivered a range of record highs, driven by a significant step up across all operating parameters, an enhanced portfolio and impactful marketing,” it said.
Forever 21, fast fashion brand from Los Angeles, California, and part of Aditya Birla Fashion and Retail Ltd. re-launched their stylized store at DLF Mall of India, Noida.The sprawling store is spread across 7,573 ft. of retail space and continues to offer globally inspired runway trends and latest collections
‘Game of Thrones’ actress Nathalie Emmanuel has been announced as a new brand ambassador of fitness brand Reebok thereby joining the likes of Gigi Hadid, Ariana Grande, Gal Gadot, Kangana Ranaut and Shahid Kapoor.The new collaboration between the brand and the actress is built upon a foundational purpose to promote, enable and energise female individuality and independence, spotlighting the multi-faceted personalities and strengths of women around the world
After the success of PrettySecrets.com, the brand decided to go multi-channel to provide the customers a seamless shopping experience. Since, the intimate nature of the category requires a specific sales environment – and sadly the unorganized market does not do 100 percent justice in providing the perfect lingerie shopping experience, the brand – decided to launch their own brand outlets.
Pretty Secrets has two seasonal launches (Spring-Summer) and (Autumn-Winter) with 300 style collection in each season spread across cross-category. With 2 season launches and 2 injection rounds per season, the brand puts in a lot of research into product development. The brand clearly stands out with their USP being our pop colours and prints.
Even though the high-street culture isn’t trending in India as much as the west, I think many successful high-street models like the Hermes Maison located at the Fort in Mumbai, or Zara’s newest icon established in a sprawling 51,000 sq ft space in a 110 year old heritage building located in South Mumbai are promising examples of where the future is heading for high-street retail in India. We recently tied up with The Collective via an MBO format to create brand salience and reach out to a wider audience.