Reliance Retail set to shut 100 Fresh stores - Reliance Retail, a subsidiary

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Reliance Retail, a subsidiary of Mukesh Ambani-led Reliance Industries, is planning to shut down over 100 Reliance Fresh stores that largely sell fresh produce and groceries, as it increases its focus on India's $450 billion wholesale cash-and-carry business.

In This Pic : Reliance Retail set to shut 100 Fresh stores

Pic Courtesy : BCCL

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At present, Reliance Retail operates around 550 Reliance Fresh stores, a typical store is spread over around 3,500 square feet and caters to a catchment area of 2-3 km.

In This Pic : Reliance Retail set to shut 100 Fresh stores

Pic Courtesy : BCCL

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The Mumbai-based firm has intimated its vendors about its impending move. "Reliance has given us heads-up and we have started realigning our businesses from these stores," a senior executive at one of the world's largest beverage firms told TOI.

In This Pic : Reliance Retail set to shut 100 Fresh stores

Pic Courtesy : BCCL

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Some of the shortlisted stores have not been giving optimal returns, while others will be converted to more feasible formats, said a person familiar with the development. An e-mailed questionnaire to a Reliance Retail spokesperson did not elicit a response.

In This Pic : Reliance Retail set to shut 100 Fresh stores

Pic Courtesy : BCCL

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Reliance Retail is not the only one to shut down its convenience stores in search for profits. In the past, unable to compete with local kirana stores and high rentals, retailers such as Aditya Birla Retail and Spencer's Retail have also taken similar steps. In 2012, Aditya Birla Retail, which runs stores under the More brand, shuttered all its outlets in Mumbai due to steep real estate costs.

In This Pic : Reliance Retail set to shut 100 Fresh stores

Pic Courtesy : BCCL