In a strategic move signaling a shift towards catering to a more diverse clientele, Reliance Retail’s value-format grocery chains, Smart and Smart Bazaar, announced the diversification of its product portfolio to include premium offerings.
According to its latest quarterly report, the grocery retail chains unveiled a variety of upscale products, such as international delicacies, luxury body mists, and high-end serums.
Dinesh Taluja, CFO of Reliance Retail, said, “We’re observing a growing trend towards premiumization across various consumption categories. This is reflected in rising average bill values, primarily fueled by the demand for premium products, leading to improved margins. Moreover, there’s a notable increase in the share of non-grocery items, further enhancing the margins for our business.”
Reliance Retail, India’s largest retailer, reported another quarter of consistent performance in its grocery segment, spearheaded by Smart and Smart Bazaar.
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The recent achievement of Smart & Smart Bazaar’s flagship event, the ‘Full Paisa Vasool Sale,’ saw a notable 21% year-on-year increase in sales, with significant contributions from household and personal care, confectionery, and snacks categories. Likewise, the retailer emphasized the impactful role of Smart & Smart Bazaar’s extensive regional presence in propelling growth, tapping into diverse regional nuances to fuel promising avenues for expansion.
“We are establishing the most extensive regional network of stores in the country,” Taluja remarked. “Therefore, offering both regional and national assortments creates a compelling value proposition for our customers.”
Remarkably, sales in specific markets leading up to Holi surpassed those during the traditionally festive season of Diwali.
“Now, as you’re aware, Diwali is the country’s prime consumption period. However, for the first time, we observed exceptionally strong sales during the pre-Holi period in certain markets. This is likely attributed to the regional insights we possess regarding assortment, as well as our regional communication efforts,” he explained.
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During the quarter, Reliance Retail’s Grocery New Commerce business segment saw significant growth, propelled by the successful inclusion of new kirana partners through initiatives such as the “Metro Kirana Utsav.” Furthermore, the HoReCa segment witnessed growth as Smart & Smart Bazaar strengthened partnerships with institutional customers, thereby broadening its revenue channels.