Reliance Retail’s digital commerce and merchant partnerships now account for 10 per cent of the total revenue.
The company said in its annual report that it has a five-fold plan to stay ahead of competition; strengthening its supply chain, expanding its business network via new commerce and physical stores, investing in design and development, enhancing sourcing ecosystem and empowering merchants. To achieve this, in its annual report announcement on Wednesday, the Mukesh Ambani-owned company said the business will establish an extensive supply chain network and leverage technology.
Reliance Retail delivered gross revenue of ₹1,53,818 crore. The revenues were impacted on account of store closures with only 80 per cent stores operational, lower footfalls of 65 per cent of last year and operational disruptions throughout the year. However, Reliance Retail raised ₹47,265 crore for a 10.09 per cent stake from marquee global investors
Over the past year, Reliance Retail’s sourcing ecosystem has worked with small producers and manufacturers SMBs, regional, national and international brands. In particular, it supported small producers to modernise their operations, minimise inefficiencies and reduce leakages.
The company is investing in building supply chain infrastructure by linking all major sourcing locations through an automated, modular, reliable and scalable warehousing, logistics and last mile fulfilment ecosystem.
Network of stores
Reliance Retail’s selling ecosystem comprises a vast network of stores and digital commerce platforms to serve customers across the length and breadth of the country. Its digital commerce and merchant partnerships account for 10 per cent of the total revenue.
“Digital commerce gained significant traction in the wake of lockdown/restrictions, it is likely to remain buoyant. Besides this, omni-channel has become a new normal. Convergence of physical and digital retail are emerging as the new normal,” it said.
Reliance Retail has been constantly expanding its new commerce model which seeks to partner with millions of unorganised merchants. The new commerce footprint is being expanded from 33 cities at present.
Besides this, the company aims to expand its footprint in tier-II and tier-III cities. Currently, two-thirds of its stores operating are growing Tier-II, Tier-III and Tier-IV towns. “Physical stores remain an opportunity for expansion, particularly in smaller towns,” it said.