InvestorQ : How has the retail side of business been doing for Reliance Retail?
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How has the retail side of business been doing for Reliance Retail?

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2 weeks ago
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Reliance Retail is already the largest retailer in India by a margin with over 3500 stores in operation. With a footprint across electronics, fashion and grocery the offline revenues of Reliance Retail are expected to grow at 16% CAGR over next 5 years. Among the various segments, leadership in growth is expected from fashion at 24% followed by groceries at 19% and electronics at 11%. Online is likely to be driven by Jio growth.

Reliance Retail is expected to rapidly ramp up its e-commerce business with business-to-consumer or B2C gross merchandise value or GMV of $15 billion plus B2B GMV of $3 billion by FY25. In addition, there is another major tailwind in the form of Jio Mart, which is Reliance Retail’s commerce platform to connect small stores to shoppers. For this, RIL will be supported by the likes of Facebook, Google and the WhatsApp platform.

Reliance Retail will make the best of its 3500 stores and 8,000 Jio points across the length and breadth of India, apart from its partnerships. Future Retail could be another addition, once the deal goes through the regulatory hiccups. Reliance Retail is expected to capture nearly 13-14% of the e-commerce market share by FY25. Currently, Reliance Retail derives 48% of core revenues from electronics, 37% from grocery and 15% from fashion.

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