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Reliance Retail focuses on disciplined JioMart expansion, targets profitability from FY28

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Reliance Retail focuses on disciplined JioMart expansion, targets profitability from FY28

Country's leading retailer Reliance Retail Ventures Ltd (RRVL) is expanding its dark store network, improving delivery speeds and deepening its presence in smaller cities, while maintaining a sharp focus on unit economics and profitability, said a senior company official on Friday.

The company is prioritising sustainable growth with investments in dark stores, customer acquisition and margins expected to start contributing positively to profitability from the next financial year, as per its roadmap, said Reliance Retail CFO Dinesh Taluja during an earnings call.

It is continuing to scale up its quick commerce operations and build capabilities to respond to evolving market realities, with a focus on developing a hyperlocal network spanning supply chain and technology.

"We are investing right now to build scale in online businesses," said Taluja, adding that the company is "investing in capabilities to improve our availability, improve the speed of delivery, improve reliability".

However, he also said it will grow its scale in e-commerce and quick-commerce with "balanced unit economics". It is maintaining a sharp focus on profitability, including shutting down large-footprint stores that are not performing, while expanding its dark-store network.

In the grocery business, where online revenue has 42% growth in Q2/FY27, a "scale-up of hyperlocal and online visible in revenue mix", it said.

Reliance Retail added 303 new stores in its sales network, with a net reduction of 222 stores after accounting for the closure of unproductive stores.

It has a "ruthless focus" on profitability with shut down on non performing large footprint stores, time lag between this.


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