So Reliance Retail is in the news as it is being touted to be in the race to acquire Future Group assets to become a bigger Indian Retailer (It is already a behemoth).
A small thread!
#RelianceRetail #Retail
A small thread!
#RelianceRetail #Retail
According to Trak.in , "All the control from Future retail basket, including FBB, Big Bazaar, Food Hall and Central, along with Future Lifestyle Ltd, and Future Supply Chain Solutions will be handed over to Reliance. These three entities will be merged into one.
Speaking of Biyani, he will be leftover with control of Future Group’s FMCG business and some other smaller group companies."
About Reliance Retail - It is India’s largest retailer by reach, scale, revenue, and profitability. It reported a turnover of Rs. 1,62,936 crore for the financial year 2019-20 through 11784 stores pan India (having total store area of 28.7 million square feet).
It has adopted a multi-prong strategy and operates a chain of neighbourhood stores, supermarkets, and wholesale cash & carry stores, specialty stores, and online stores and has democratized access to a variety of products and services across diverse segments for Indian consumers.
In the food and grocery category Reliance Retail operates Reliance Fresh, Reliance Smart, and Reliance Market stores.
In consumer electronics it operates Reliance Digital, Reliance Digital Express Mini stores, and Jio stores; in fashion & lifestyle, it operates Reliance Trends, Trends Women, Project Eve, Reliance Footprint, Reliance Jewels
and AJIO.com in addition to a large number of partner brand stores across the country.
These 4 Images sum up their brands in each segment and then the categories in those segments. (Taken from the annual report)
Notice the pyramid of customer targeting (Img 3)
These 4 Images sum up their brands in each segment and then the categories in those segments. (Taken from the annual report)
Notice the pyramid of customer targeting (Img 3)
But enough of stories and brand count etc. Let's look at numbers.
Img 1 and Img 2 show historical financials
One thing we notice that in terms of store count + area , and the revenue it beats everyone hands down, but EBITDA margins aren't that great. But, they are picking up.
Img 1 and Img 2 show historical financials
One thing we notice that in terms of store count + area , and the revenue it beats everyone hands down, but EBITDA margins aren't that great. But, they are picking up.
So like we saw Margins are not great. That is one front on which Rel-Retail needs to improve.
WE see here that its margins are lower compared to other retailers.
Q4FY19 -
Q1FY20 - stocksandbiceps.com/q1fy20-roundup…
WE see here that its margins are lower compared to other retailers.
Q4FY19 -
Q1FY20 - stocksandbiceps.com/q1fy20-roundup…
So how it can improve margin?
Private Labelling (which every retailer including RR does it)
High margin products (digital, fashion and lifestyle products)
Do contribute more thoughts on this.
Disclosure - Holding Reliance Industries for Family, no reco. Just educational.
Private Labelling (which every retailer including RR does it)
High margin products (digital, fashion and lifestyle products)
Do contribute more thoughts on this.
Disclosure - Holding Reliance Industries for Family, no reco. Just educational.
