INDIA: H1 sales up at Indian retailer Reliance
Reliance Industries said yesterday (12 October) that its retail arm, Reliance Retail, booked a 48% increase in first-half sales.
During the period, Reliance said its income from retail operations increased to INR49.1bn (US$928m).
The company said gains were driven by store openings and same-store sales growth. The group suggested that its "unique shopping experience" and "high-quality and affordable products" had enabled it to expand footfall in the period. Across its various formats, which range from department stores to supermarkets, Reliance said that same-store sales were up between 5% and 25%.
Revenue gains at the group's retail interests lead segment gains at the Indian oil-to-grocery conglomerate. Group sales were up 14.4% in the period. However, pre-tax profit dropped 16.1% and net profit declined 13.3% to US$1.9bn.
HALF YEARLY REVENUE OF ' 188,191 CRORE ($ 35.6 BILLION)
RECORD HALF YEARLY EXPORTS OF ' 112,667 CRORE ($ 21.3 BILLION)
NET PROFIT OF ' 9,849 CRORE ($ 1.9 BILLION)
ON A Q-O-Q BASIS, NET PROFIT UP 20% TO ' 5,376 CRORE ($1.0 BILLION)
PBDIT OF ' 18,468 CRORE ($ 3.5 BILLION)
During the 1H FY13 Reliance Retail witnessed strong growth through new store launches and same store sales growth.Turnover grew by over 48% to ' 4,910 crore ($ 928 million) as compared to the corresponding period of the previous year. Unique shopping experience, high-quality and affordable products helped in achieving robust same store sales growth of 5% to 25% across formats over last year.Value Format opened 2 new Reliance Marts in Coimbatore and Aurangabad and further consolidated the company's position as the largest food retailer in the country.Strong growth in the company's specialty formats continued into the current quarter as well with more store openings. Reliance Trends and Reliance Digital formats joined Reliance Footprint in the 100 store club during this period further strengthening their position as the largest retail chain in their segments. Other specialty formats also continued to expand store network in newer geographies, strengthening their pan-India presence in the quarter.Reliance Retail grew its presence through its partnerships during this period. Its partnership with Grand Vision that operates Vision Express stores opened 10 stores during this period taking the count to 172 stores. The period also witnessed new store openings for Hamleys, Steve Madden and Timberland.Reliance Brands continued to make more luxury brands available to the Indian consumers by announcing partnership with Dune and Stuart Weitzman, global high-end footwear brands.At the end of the quarter, 'Reliance One', the company's loyalty program had more than 11 million members who shopped across over 1,350 stores in 122 cities across India, covering 7 million square feet.
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Original source: Reliance Industries
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