464 new stores opened
FinTech BizNews Service
Mumbai, 14 October, 2024: Reliance Retail Ventures Limited (“RRVL”) has reported its financial performance for the quarter ended 30th September, 2024.
RRVL’s quarterly revenue is at Rs76,302 crore, marginally down. Reliance Retail Ventures’ quarterly EBITDA is at Rs5,850 crore, marginally up.
Total footfall of 297 million registered across formats; 464 new stores opened.
Quarterly Performance (2Q FY25 vs 2Q FY24)
• Business registered a revenue of Rs 76,302 crore, down 1.1% Y-o-Y. Growth impacted by weak Fashion and Lifestyle (F&L) demand, continued focus on streamlining of operations and calibrated approach to B2B business to improve margins.
• Reported EBITDA at Rs 5,850 crore which was up 0.3% Y-o-Y.
• EBITDA from operations was at Rs 5,675 crore, up 1.0% Y-o-Y. EBITDA margin from operations at 8.5%, up 40 bps Y-o-Y.
• Depreciation for 2Q FY25 at Rs 1,420 crore, up 1.5% Y-o-Y. Depreciation for 1Q FY25 was higher due to accelerated depreciation for stores under closure
Quarterly Performance
• The business opened 464 new stores. Total store count at 18,946 with area under operation at 79.4 million sq. ft.
• The quarter recorded footfalls of over 297 million, a growth of 14% Y-o-Y.
• The focus on scaling up Digital Commerce and New Commerce continued with these channels contributing to 17% of total revenue. • The registered customer base grew to 327 million, making Reliance Retail one of the most preferred retailers in the country.
During the quarter, the business entered into exclusive partnerships with Delta Galil to expand presence in lingerie and active wear categories; launched ASOS in India.
Consumer Electronics
• Digital stores maintained growth momentum led by a strong growth in average bill value. The network of Digital stores crossed 650 stores.
• The business executed Digital India campaign successfully with a revenue uptick of 60% Y-o-Y as the customers benefited from exciting consumer offers and wide selection of products to choose from.
• resQ, the services business, delivered steady growth with service volume up 28% Y-o-Y. The on-demand services are now operational in 150 cities.
• Own brand / PBG introduced several new products across categories even as it continued to grow its merchant base which was up 2X Y-o-Y.
• JioMart Digital business growth was driven across categories. The business expanded its merchant partners and consistently increasing the wallet share.
Fashion and Lifestyle
• The business remained focused on maintaining fashion newness in the stores which is helping its engagement with customers. Business benefited from various marketing initiatives during regional festivals like Onam, Ganesh Chaturthi and Pujo to drive footfalls and transactions.
• The Fashion and Lifestyle vertical has been scaling up new formats which continue to gain positive traction with customers. Youth focused fashion retail format, Yousta, has crossed a milestone of 50 stores within its first year of launch.
• AJIO delivered steady performance as it expanded its product catalogue by over 25% Y-o-Y and added over 1.8 million new customers. AJIO has been strengthening its portfolio through new brands launches like ASOS, H&M, Timberland, to name a few.
Premium Brands business launched its first Armani Café to further strengthen its F&B portfolio. Hamleys format continues to do well and is undertaking a focused international expansion.
• Ajio Luxe delivered strong growth with options count increasing by 28% Y-o-Y and brand portfolio crossing 725 brands.
• Jewelry business delivered growth led by improvement in ABV and launch of 9 new collections during the period.
Grocery
• Grocery delivered another quarter of steady growth led by Smart Bazaar and Smart stores.
• The business successfully executed Full Paisa Vasool Sale during the period as customers continued to enjoy the wide choice of offers across categories. The business also registered highest ever single day sales on Independence Day.
• The growth was broad based across categories led by growth in Confectioneries & Snacks (30% Y-o-Y), fruits (26% Y-o-Y), apparel (49% Y-o-Y).
• Grocery New Commerce business continues its growth trajectory as Metro format strengthened its engagement with Trader and HoReCa segments. The business executed multiple campaigns like Freedom Sales, Mehangai Se Azadi, Metro Aayein Tyohaar Manayein to drive growth.
JioMart
• JioMart is scaling up quick commerce pilot by serving customers through own store network.
• The non-grocery categories continue to do well with AOV growing 2X Y-o-Y led by uptick in consumer electronics.
• The option count continued to grow with its seller base growing by 46% Y-o-Y and option count up by13% Y-o-Y giving customers access to a wider product catalogue to choose from.
Consumer Brands
• Consumer brands continue to deliver growth across categories with revenue from General Trade growing 250%+ Y-o-Y. Many new products / markets were launched under its bouquet of brands across categories.
LEADERSHIP QUOTE
Isha M. Ambani, Executive Director, Reliance Retail Ventures Limited, said “Reliance Retail continues to make investments in technology and infrastructure to build a strong foundation for future growth and maintain market leadership. We continue to strengthen our customer proposition with innovative products that spans everyday essentials to premium offerings. By continuously enhancing our assortment and innovating across categories, we are creating a shopping experience that meets the evolving needs of our customers and reinforces our leadership in the retail space”.
