How many formats should a Retailer have? While in the west, retailers have not more than 4-5 formats, organized retail players in India like Reliance Retail have 8 and still growing. Reliance already had the following formats:
Reliance Fresh - Grocery (focue on Fresh fruits and vegetables, staples, groceries, fresh juice bars and dairy products)
Reliance Mart - HyperMarket
Reliance Footprint - Footware and handbag store
Reliance Digital - Consumer Electronics
Reliance Trendz - Apparel
Reliance Wellness - Wellness products
Reliance Jewel - Jewellery Store
Now Reliance has launched a specialty store called Reliance TimeOut which will stock books, music, stationery, toys and gifts. Apparently there are plans for major restructuring across these various Reliance retail formats.
It has been a year since Reliance Industries' retail plans were made public. It started with the Reliance Fresh stores in Hyderabad in November last year. Now, Reliance Industries is looking to restructure its retail business. We hear that there will be 26 distinct subsidiaries, going forward. Reliance Fresh is already being spun off into the independent firm Ranger Farm, and may be shifting its focus slowly but surely from fresh fruits and vegetables.
12 months after Reliance Retail unveiled its first store-Reliance Fresh in Hyderabad, the company is now looking at some heavy duty restructuring. While RIL officials refused to comment, CNBC-TV18 learns thatReliance Retail is gearing up to split its business into 26 independent subsidiaries, within the next 90 days. These subsidiaries will be identified on the basis of formats, services or product categories.
Each company will operate with a separate profit and loss account with an independent board. Sources say that there will be more than 10 CEOs, each heading between 1-4 entities.
I would throw this question to all of you. How many formats should a retailer have? What kind of strategy applies best in such a case?