Reliance Retail sets turnover target

India’s Reliance Retail hopes to gain up to Rs50,000 crore (US$12 billion) over the next three to four years.

The retailer’s optimism is largely attributed to the good performance of its cash-and-carry business, Reliance Market, which now boasts a customer base of 125,000 since its inception in 2011.

Reliance Retail is the first local player to enter cash-and-carry business which is dominated by foreign companies like Walmart, Carrefour and Metro.

The cash-and-carry business is an efficient format due to its fewer requirements for stock-keeping units which translates to better supplier management and greater sourcing power.

Without disclosing details, Reliance Retail said it will expand the Reliance Market to take advantage of the growth in the business.

Its electronics stores Reliance Digital and Reliance Digital Express, which has a combined 139 stores, are also to be expanded as well as its fashion and lifestyle businesses, which account 15 per cent of its earnings.

Its Reliance Jewels business arm is expected to make a minimal contribution to the turnover target.

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