RIL’s ‘quick’ retail fix: Expat coaches
Reliance Retail has tapped several expatriates with retail experience from Europe, US and South Asia in a bid to streamline its grocery supply chain operations, enhance the online fashion business Ajio and improve margins, two industry executives said. Some of these expats have also been entrusted to coach a pool of young Indian leaders for a top leadership succession planning exercise started recently by the retail business of Reliance Industries Ltd, the executives said.
At least five chief executives at Reliance Retail in their late 50s and 60s may move to mentoring roles as advisors or superannuate over the next few years. The initiatives at Reliance Retail come at a time when brick-and-mortar retailers, including Reliance, and Avenue Supermarts Ltd—the owner of DMart retail chain—are facing intense challenges in grocery retail from quick commerce platforms in large cities amid a subdued demand environment.
Reliance Retail has also slowed down expansion and sharply increased store closures this fiscal, resulting in only 110 net store additions in the first half of this fiscal year though it had opened 795 stores. This means store closures exceeded store openings by over six times. Last year, in the same period, the company reported net store additions of 610 outlets when it had opened 1,026 stores. The company had noted a weak apparel and footwear business in a quarterly earnings call earlier this month.
“Some 20-30 professionals—some expats and some from within India—have recently joined as consultants to
