Reliance Retail revamps Centro department stores format

27 January 2025, Mumbai

Reliance Retail is revamping its Centro department stores format. To facilitate this transformation, the company has temporarily closed all existing Centro stores across India. It has also paused all sales and inventory management, requesting brands to retrieve their merchandise and fixtures.

This remodeling initiative aims to prioritize in-house and partner brands, such as Azorte, Yousta, Gap, and Superdry, through a shop-in-shop model. The future of the 450 other local and global brands currently sold at Centro remains uncertain.

Centro was launched in September 2022, following Reliance Retail's acquisition of locations previously operated by Future Group's Central stores. The revamped format has faced competition from other department stores like Dubai-based Lifestyle International and Raheja's Shoppers Stop.

India's retail market growth slowed to 4 per cent last year, following a surge in post-pandemic consumer spending. An operator of 18,946 stores across various categories, Reliance Retail reported a 3.5 per cent revenue decline in its apparel and lifestyle business during the July-September quarter. This decline was attributed to weak demand and a focus on improving margins in the wholesale segment.

The company has also significantly slowed its retail expansion pace, with store closures outnumbering store openings by more than six times in the first half of this fiscal year.

Despite these challenges, Dinesh Taluja, CFO, Reliance Retail, expressed confidence in the company's long-term growth prospects. He highlighted investments in technology and improved design capabilities as key strategies to strengthen the company's market leadership.

The remodeled Centro stores are expected to align with Reliance Retail's broader strategy to leverage its in-house brands and solidify its position in the competitive Indian retail market.

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