Reliance Retail Temporarily Shuts Down Centro Stores for Strategic Revamp
Reliance Retail Temporarily Shuts Down Centro Stores for Strategic Revamp
Retail chain to focus on in-house and partner brands under a new format.Â
Reliance Retail is temporarily shutting down multiple stores under its department chain, Centro, to implement a major format overhaul. The move is aimed at prioritizing its own brands and labels, many of which the company has introduced in India through licensing partnerships.
The decision follows Reliance Retail’s rebranding of Future Group’s Central outlets as Centro in September 2022, after taking over the leases at surrendered properties.
The company has already closed three Centro outlets and plans to temporarily shut down another 20 locations by the end of the month. According to sources, Reliance has informed its partner brands to retrieve their merchandise, promotional materials, and fixtures from the stores as part of the renovation process.
In a letter addressed to its brand partners, Reliance Retail confirmed the temporary suspension of operations at all Centro locations to facilitate the redesign.
The revamped stores are expected to feature a shop-in-shop model, with an emphasis on Reliance’s in-house and partner brands. These include labels like Azorte and Yousta, alongside international names such as Gap and Superdry, which Reliance represents as a licensed partner.
While it remains uncertain if the redesigned outlets will continue to feature a wide range of local and international brands, the strategy underscores Reliance’s efforts to strengthen its proprietary offerings.
Centro currently houses over 450 local and global brands, competing with department store chains such as Lifestyle International and Shoppers Stop. However, Reliance Retail is rethinking its approach amidst slowing retail expansion.
The retail sector experienced just 4% growth last year, following a post-pandemic surge. Additionally, Reliance Retail reported a 3.5% drop in revenue for the quarter ending September, attributed to weak demand in the fashion and lifestyle categories and efforts to enhance margins in its wholesale operations.
Despite these challenges, Reliance Retail remains a dominant player in India’s retail market. Chief Financial Officer Dinesh Taluja emphasized the company’s commitment to long-term growth through investments in technology and design innovation.
