Reliance Retail Ventures Ltd.’s first-quarter profit fell, while its margin expanded on the back of higher contribution from fashion and electronics businesses.
Grocery
The business recorded its highest ever revenues and doubled its business over last year, led by broad based growth across categories.
Reliance Retail has utilized its network, scale, and efficient sourcing to optimize product prices to reduce the burden of inflationary pressures on customers wallet. That helps to price our products below MRP all year round at its stores and JioMart, the company said.
Potato from Agra, grapes from Tazgaon, and tender coconut from Mandya are sold at cheapest prices possible shielding the consumers from rising price. In staples, the produce sourced during the harvest seasons ensured that the business sourced at optimum rates.
The business has been focusing on increasing the share of non-food categories to improve margins at stores. In Q1, the share of non-food categories increased by 470 bps year-on-year.
JioMart is now live in 268 cities. Revenues are up 2x over last year.
Tier 2 and beyond markets grew twice as fast as tier 1 markets.
Daily subscription orders through Milkbasket have doubled over last year as the service is ready for roll out to newer geographies.
The growth in JioMart Kirana orders is driven by increased merchant penetration and addition of region-specific assortment in commodities. Merchant base grew 4x over last year as the business focused on onboarding HoReCa and institutions in addition to Kirana merchant.
Pharma
Pharma business nearly doubled over last year on back of stronger store performance as well as digital commerce platform.
To enhance customer shopping experience, 80% of the store network is now hyperlocal enabled which is helping in faster deliveries to customers.
Merchant base increased by 50% over trailing quarter as the business is quickly ramping up its presence with reach scaled to over 2,400 towns.
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