1. About Reliance Fresh:
Reliance Fresh is a convenience store that is part of the Reliance Industries of India
Reliance Fresh has owned about 450 stores in India
In general each store has been constructed under area of 3,000 to 4,000 sq. ft
First store was opened in Hyderabad in 2005
Now the company has stores in 80 cities across 14 states
Reliance fresh has to shut down operations in about 10 stores, inefficient supply chain and
political protests in various parts of the country are major reason for it.
About 24,000 employees work across various functions in Reliance Fresh
Average footfall is of about 25 million across various stores
They procure directly from farmers in order to reduce costs and ensure fresh products in a
timely manner
Also, Company has its own private label with the name ‘Reliance Select’ in staples like rice
Reliance plans to invest in excess of 250 billion in the next 4 years in their retail division
Basic model on which company operates: high volume, low margin model
The warehousing and purchasing is central to each state from which products are shipped
to various parts of the state.
Technology plays major part in efficient and effective functioning of stores
Company also have strong forward and backward integration
Pricing Strategy:
Low Cost, Discount Model:
Generally, Reliance Fresh stores offer an average discount of 7-8% on almost all products on
MRP. As they manage to source it directly from producers helps them in achieving low cost
model.
Other factors that help them in keeping low prices are: Low margin, High sales volume, Bulk
purchase, Discount pricing, Centralized warehouse and sourcing.
Also sometimes company follows promotional pricing in order to increase footfall in off hours.
