Reliance Retail, Clarks end partnership by closing all stores in India
23 August 2024, Mumbai
Signaling a notable shift in India’s retail landscape, Reliance Retail and UK-based footwear giant Clarks have ended their two-year joint venture. The dissolving of the partnership results in closing of all Clarks stores in India, marking the brand’s strategic shift from the market.
The joint venture, Clarks Reliance Footwear, operated 32 exclusive Clarks-branded stores across major Indian cities, including New Delhi, Mumbai, Bengaluru, Lucknow, Hyderabad, and Chennai.
Post the closure of these stores, Clarks plans to re-enter the Indian market through a different business model. The company could restructure its operations as a fully-owned Indian subsidiary. India’s regulations permit 100 per cent foreign ownership in single-brand retail ventures, allowing companies to operate under one brand name. This model has been successfully utilised by global companies like Apple, H&M, Uniqlo, Decathlon, and Ikea.
The single-brand retail route offers global brands extensive opportunities, including the ability to open exclusive stores, operate e-commerce platforms, and engage in franchise operations. However, it also comes with specific conditions, such as sourcing a significant portion of products locally if foreign investment exceeds 51 per cent.
Clarks initially entered the Indian market in 2009 through a joint venture with Kishore Biyani’s Future Group, operating as Clarks Future Footwear. The partnership shifted to Reliance Brands in 2022 due to the financial difficulties faced by the Future Group.
