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.
Raghu Pillai, President and CE (operations and strategy), Reliance Retail, Reliance, while reiterating the promise of â€œSaste ka Dawaa. Acche ka Vaadaâ€ said, â€œWe will offer the cheapest prices in the city.â€
According to K. Radhakrishnan, CEO, hypermarkets, Reliance Retail, the Ahmedabad store is serving 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.
Footwear 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 Rs599.
Companies 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.
The next hypermarket was supposed to come up in Jamnagar, followed hypermarkets in the NCR region, Hyderabad, Tirupathi, Vijaywada, Pune and Ludhiana. Though smaller, these stores cover floor space in the range of 20,000 sq ft to 40,000 sq ft.
The company was 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.
The hypermarket carries a range of over 35,000 products catering to the entire family. Shoppers have the option to choose from a wide array of products in every category ranging from Fresh Produce, Food & Grocery, Home Care Products, Apparel and Accessories, Non-food FMCG products, Consumer Durables and IT,Automotive Accessories, Lifestyle Product, Footwear, wellness products and also a wholesale section.
Reliance mart carryies over 500,000 pieces of 95,000 products covered under 3,900 categories, the hypermarket offers unique customers services like tailoring, shoe repairing, watch repairing, and laundry, within its premises. It also house shops for a number of products and services including photos, oven fresh breads, and gifts. It has a â€œice cream trainâ€ for kids. Customers are able to enjoy quality foods and beverages in a cafeteria and transact money at an ATM kiosk. Benefits under the companyâ€™s â€˜Earn Anywhere, Spend Anywhereâ€™ customer loyalty programme â€œReliance Oneâ€ are continue to remain available to both the new and existing customers. Customers are also able to avail consumer loans on attractive terms.
The hypermarket, besides carrying a number of exclusive products in the store,also launched a number of private lables like â€œFirst Classâ€, â€œNetworkâ€, â€œNetplayâ€, â€œTeamSpiritâ€ and â€œSparshâ€ (Formal / Casual/ Ethnic Wear for Men and Women), â€œDNM-Xâ€ (jeans for men and women), â€œPandaâ€ (Kids wear), â€œHi Attitudeâ€ (semi formal wear), â€œToscoâ€ (party wear) and â€œMonzaâ€ (sports wear) in the apparels category, and â€œZigâ€ (foot wear) and â€œGripâ€ (luggage) in other categories. Reliance will also sell a range of staple products under â€œSelectâ€ lable, which are already available at its â€œFreshâ€ stores.