The reports noted that this is directed towards eliminating redundancies and would consolidate overlapping functions, like operations
As Reliance Retail is preparing for a potential listing, its luxury and premium retail subsidiary, Reliance Brands, is merging its operations with the parent, as per media reports. The move is aimed at improving efficiency and streamlining operations.
The reports noted that this is directed towards eliminating redundancies and would consolidate overlapping functions, like operations, back-end teams and property. This will reduce duplication, as per the reports, which added that Reliance Brands will function as a separate division within Reliance Retail.
With the reports indicating that the luxury division is being integrated into the group’s central leadership structure, the business heads have already been reporting to the Reliance Retail board directly.
With the company aiming to improve efficiency, it is moving away from its earlier strategy of allowing up to two years to assess a new store, earlier reports pointed out. Reliance Retail has now directed all the new stores to break even within 6 to 12 months, as per the media reports.
The reports added that failing this, the stores will either be replaced with another retail format or shut down. The development comes as the company is shifting its focus to profitability and margins ahead of its initial public offering (IPO). The plans regarding the IPO will be shared later, as per the reports.
