Reliance Retail Ventures reported a net profit of INR 2,836 crore for Q2 of FY25, reflecting a 1.3 per cent year-on-year increase. However,͏͏ revenue͏͏ from͏͏ operations͏͏ declined͏͏ by͏͏ 3.5͏͏ per͏͏ cent͏͏ to͏͏ INR͏͏ 66,502͏͏ crore͏͏ due͏͏ to͏͏ weakened͏͏ consumer͏͏ demand,͏͏ particularly͏͏ in͏͏ the͏͏ fashion͏͏ and͏͏ lifestyle͏͏ segment.
EBITDA͏͏ remained͏͏ unchanged͏͏ at͏͏ INR͏͏ 5,675͏͏ crore,͏͏ while͏͏ the͏͏ EBITDA͏͏ margin͏͏ experienced͏͏ a͏͏ modest͏͏ increase͏͏ of͏͏ 30͏͏ basis͏͏ points,͏͏ reaching͏͏ 8.8͏͏ per͏͏ cent͏͏ for͏͏ the͏͏ quarter.
Store͏͏ Network͏͏ Expands͏͏ Further:
The͏͏ company͏͏ ended͏͏ the͏͏ quarter͏͏ with͏͏ 18,946͏͏ stores,͏͏ reflecting͏͏ a͏͏ 1.6͏͏ per͏͏ cent͏͏ year-on-year͏͏ increase,͏͏ spread͏͏ across͏͏ 79.4͏͏ million͏͏ square͏͏ feet—an͏͏ 11͏͏ per͏͏ cent͏͏ expansion.͏͏ It͏͏ opened͏͏ 464͏͏ new͏͏ stores͏͏ during͏͏ the͏͏ quarter͏͏ and͏͏ noted͏͏ plans͏͏ to͏͏ enhance͏͏ its͏͏ digital͏͏ capabilities.
In͏͏ addition͏͏ to͏͏ weak͏͏ demand,͏͏ the͏͏ financials͏͏ were͏͏ impacted͏͏ by͏͏ the͏͏ company’s͏͏ ongoing͏͏ efforts͏͏ to͏͏ streamline͏͏ operations͏͏ and͏͏ a͏͏ measured͏͏ approach͏͏ to͏͏ its͏͏ B2B͏͏ business͏͏ aimed͏͏ at͏͏ improving͏͏ margins.
Digital͏͏ and͏͏ New͏͏ Commerce͏͏ Channels͏͏ Drive͏͏ Revenue:
The͏͏ focus͏͏ on͏͏ expanding͏͏ digital͏͏ commerce͏͏ and͏͏ new͏͏ commerce͏͏ continued,͏͏ with͏͏ these͏͏ channels͏͏ accounting͏͏ for͏͏ 17͏͏ per͏͏ cent͏͏ of͏͏ total͏͏ revenue.͏͏ The͏͏ registered͏͏ customer͏͏ base͏͏ grew͏͏ to͏͏ 327͏͏ million.
In͏͏ the͏͏ quarter,͏͏ the͏͏ company͏͏ established͏͏ exclusive͏͏ partnerships͏͏ with͏͏ Delta͏͏ Galil͏͏ to͏͏ strengthen͏͏ its͏͏ presence͏͏ in͏͏ the͏͏ lingerie͏͏ and͏͏ active͏͏ wear͏͏ segments͏͏ while͏͏ also͏͏ launching͏͏ ASOS͏͏ in͏͏ India.
Continue͏͏ Exploring:͏͏ Reliance Retail and͏͏ Delta͏͏ Galil͏͏ form͏͏ strategic͏͏ joint͏͏ venture͏͏ to͏͏ transform͏͏ India’s͏͏ apparel͏͏ market
In͏͏ the͏͏ consumer͏͏ electronics͏͏ segment,͏͏ digital͏͏ stores͏͏ continued͏͏ to͏͏ grow,͏͏ supported͏͏ by͏͏ a͏͏ notable͏͏ rise͏͏ in͏͏ average͏͏ bill͏͏ value.͏͏ The͏͏ number͏͏ of͏͏ digital͏͏ stores͏͏ exceeded͏͏ 650.͏͏ Meanwhile,͏͏ the͏͏ services͏͏ business,͏͏ resQ,͏͏ reported͏͏ a͏͏ 28͏͏ per͏͏ cent͏͏ increase͏͏ in͏͏ service͏͏ volume,͏͏ launched͏͏ multiple͏͏ new͏͏ products͏͏ under͏͏ its͏͏ own͏͏ brand,͏͏ and͏͏ successfully͏͏ doubled͏͏ its͏͏ merchant͏͏ base.
Grocery͏͏ Segment͏͏ Boosted͏͏ by͏͏ New͏͏ Formats:
Formats͏͏ like͏͏ Smart͏͏ Bazaar͏͏ and͏͏ Smart͏͏ Stores͏͏ drove͏͏ growth͏͏ in͏͏ the͏͏ grocery͏͏ sector,͏͏ with͏͏ categories͏͏ such͏͏ as͏͏ confectionery,͏͏ fruits,͏͏ and͏͏ apparel͏͏ experiencing͏͏ double-digit͏͏ increases.
JioMart͏͏ is͏͏ expanding͏͏ its͏͏ quick͏͏ commerce͏͏ service͏͏ by͏͏ leveraging͏͏ its͏͏ own͏͏ store͏͏ network,͏͏ the͏͏ company͏͏ said.
In͏͏ the͏͏ fashion͏͏ and͏͏ lifestyle͏͏ segment,͏͏ the͏͏ company͏͏ mentioned͏͏ it͏͏ was͏͏ focusing͏͏ on͏͏ keeping͏͏ customers͏͏ engaged͏͏ by͏͏ introducing͏͏ fresh͏͏ collections͏͏ in͏͏ stores͏͏ and͏͏ launching͏͏ various͏͏ marketing͏͏ initiatives͏͏ around͏͏ festivals.
