Centro is a close competitor to Shoppers Stop and Dubai-based Lifestyle International with about 450 local and international brands.
New Delhi: The Mukesh Ambani-backed Reliance Retail, the retail arm of Reliance Industries, has temporarily closed its department store chain, Centro. The step is seen as an effort by the company to reposition the format and prioritise its own brands and licensed labels. Centro is with an alliance with 80 international brands, including Superdry and Gap, in addition to its own brands, Azorte and Yousta.
The calculated step supports the company’s goal of establishing a shop-in-shop model. Centro is a close competitor to Shoppers Stop and Dubai-based Lifestyle International with about 450 local and international brands. Two dozen more locations are anticipated to close by the end of the month, in addition to the three that have already closed.
Citing redevelopment plans, Reliance Retail wrote to brand partners requesting the removal of fixtures, inventory, and promotional items. Launched in the year September 2022, Centro took over the properties previously operated by Future Group’s Central. According to The Economic Times report, Reliance Retail had converted these locations after acquiring the leases. The company has not confirmed whether existing brands will return after the relaunch, but insiders hint that the emphasis will likely move toward promoting Reliance’s own products.
To recall, for the September quarter, Reliance Retail, which runs 18,946 outlets in the food, electronics, and clothing categories, reported a 3.5 percent drop in revenue. The decline was ascribed to both deliberate attempts to increase wholesale profit margins and poor demand in the fashion and lifestyle sectors.
“While the overall macro context remained weak and we had degrowth in the business on the apparel, apparel and footwear side, the fundamentals remain strong. We are investing in technology to improve our design to shelf cycle, we are improving our design capabilities so that these will help us continue our market leadership over a longer time frame,” Dinesh Taluja, chief financial officer at Reliance Retail, told analysts last month.