Mumbai: Reliance Retail’s grocery business has experienced a robust growth of 31%, propelled by the success of its Smart and Smart Bazaar stores, which have been strategically expanding their footprint while emphasizing premiumisation and regional expansion. The grocery formats are not only focusing on expanding into new categories but also diversifying their product portfolio with premium offerings such as luxury body mists and high-end serums to meet the changing preferences of consumers.
Dinesh Taluja, Chief Financial Officer of Reliance Retail, highlighted the growing trend towards premiumisation, which has led to increased average bill values and improved margins for the company. The recent ‘Full Paisa Vasool Sale’ conducted by Smart & Smart Bazaar witnessed a remarkable 21% year-on-year sales surge, primarily driven by household and personal care items.
One of the key drivers of this growth has been the deep regional penetration of Smart and Smart Bazaar stores, which have leveraged unique regional insights to enhance their expansion prospects. “We are building the deepest regional network of stores in the country,” stated Dinesh Taluja during the media and investor call for Reliance Industries Ltd’s Q4 2023-24 financial results announcement. This strategy of combining regional assortments with national offerings has resonated well with customers, providing them with a compelling value proposition.
The success of this regional approach was evident during the sales leading up to Holi, which surpassed those of Diwali in certain markets. This underscores the effectiveness of leveraging regional insights in assortment planning and communication strategies.
Furthermore, Reliance Retail’s Grocery New Commerce segment has witnessed significant growth, driven by initiatives such as the “Metro Kirana Utsav,” aimed at further strengthening its presence in the grocery retail sector. Additionally, partnerships with institutional customers in the HoReCa (Hotel, Restaurant, and Catering) segment have contributed to diversifying the company’s revenue streams.