With Globus going down the private label path, now Reliance too is betting that
private label stores are where the money really is. Reliance Mart, the first hypermarket
opened by Reliance Retail in Ahmedabad on Independence Day this year, has bet
on the value platform and its private labels to drive sales.
to K. Radhakrishnan, CEO, hypermarkets, Reliance Retail, the Ahmedabad store would
serve as a good test market for mass brands that offer a value proposition. Stocking
a high proportion of private labels in select categories such as apparel, grocery,
staples, (atta, sugar, tea under the ''select'' and ''value'' labels) footwear and
watches, apparel is said to be a differentiator, as 50 per cent of stocks are
private labels with only half being made up by brands, that too only those perceived
as value brands.
is next with 90 per cent private labels, as is another favourite category of watches
at 15 per cent. Competitive pricing is key, which is illustrated by shirts and
jeans offered at Rs199, t-shirts for Rs99, wrinkle-free shirts and trousers at
such as Celebrity Fashions, among others, which markets the Indian Terrain apparel
range, supply to Reliance under its private label called Spirit. Arvind Mills
too, for instance, has supplied a denim label to the Mart.
retail says all templates for expansion will flow from this store.
next hypermarket is scheduled to come up in Jamnagar, followed hypermarkets in
the NCR region, Hyderabad, Tirupathi, Vijaywada, Pune and Ludhiana. Though smaller,
these stores would cover floor space in the range of 20,000 sq ft to 40,000 sq
company is planning for 30 Marts by year-end. First day sales at the Ahmedabad
store pegged the record at over Rs60 lakh, which has lead the company to estimate
an operational breakeven for the store in about three months. The store is averaging
7,000 bills a day.