Reliance Retail temporarily shuts down Centro stores to focus on in-house brands amid strategic revamp
Mumbai: Reliance Retail is temporarily shutting down several stores in its Centro department chain as part of a strategic repositioning to emphasize its in-house brands and labels, many of which are launched in India under licensing partnerships, The Economic Times reported.
The move comes after Reliance rebranded Future Group's Central stores as Centro in September 2022, taking over leases from the former retailer.
As part of the overhaul, Reliance has already closed three Centro outlets and plans to shut down 20 more by the end of the month.
Sources indicated that brands with merchandise in these locations have been asked to retrieve their goods and fixtures for the upcoming renovations.
In a letter to brand partners, Reliance confirmed a temporary closure of all Centro locations for this revamp, instructing them to remove merchandise, promotional materials, and other items from these stores.
While it's uncertain if local and international brands will still be featured in the renovated stores, reports suggest that Reliance is exploring a shop-in-shop model focused on its own brands.
These would include Reliance-owned names like Azorte and Yousta, as well as licensed international brands like Gap and Superdry, which Reliance has partnered with in recent years.
Centro currently offers around 450 brands, competing with department chains like Dubai-based Lifestyle International and the Raheja Group's Shoppers Stop.
Despite a slowdown in retail sales growth—up only 4% last year after a surge in post-pandemic spending—Reliance Retail continues to be a major player in India's retail landscape.
In its most recent earnings report, Reliance Retail disclosed a 3.5% decline in revenue for the quarter ending September, its first revenue drop outside of pandemic-related closures.
This decrease was driven by weak demand in fashion and lifestyle products and a shift toward margin improvement in its wholesale business.
Chief Financial Officer Dinesh Taluja noted that despite these challenges, the company remains committed to long-term growth through investments in technology and design.
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