Reliance Digital to set up 400 stores in two years

Reliance Digital Retail, the electronics chain run by Mukesh Amabni-led Reliance group, has charted out aggressive expansion plans.
The company plans to ramp up its current store count of 104 stores to 500 by March 2014, said Vijay Nair, assistant vice-president, Reliance Retail.
While Nair did not disclose the amount set aside for expansion, he said the company will focus on Tier 2 and Tier 3 cities for the expansion.
To strengthen the back-end operations, the company plans to increase the warehouse count from 21 to one in every state soon.
The plan is in line with the group’s plans to expand the retail business at a scorching space.
It is looking to grow the retail business 5-6 fold in the next 3-4 years to achieve a revenue of `40,000-50,000 crore.
Experts said Reliance has deep pockets, which gives it a leeway to expand at a time when other retailers are cautious.
The company also plans to tap the online space to boost sales.
“We should be present in the online space by January end,” said Nair.
While it plans to focus more on private labels, the retailer is also extending product portfolio and launching products such as tablets.
On profitability, Nair said, “Currently, the stores that are operational for over a year are profitable. The newer stores will also be able to break even in a year’s time.”
The company said it has been experimenting with store formats and would continue to do so.
At present, its store mix includes smaller stores called I stores that are spread across 1,500-2,000 sq ft onward and larger stores, which are spread over 8,000 sq ft.