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    Reliance Retail Q1 sales drop 17% to ₹31,633 cr as stores shut by lockdown

    Synopsis

    Operating profit of the country's biggest retailer by revenue almost halved in the quarter, as its fixed cost remained almost similar to the pre-lockdown period despite store closures. The company posted net sales of ₹31,633 crore in the three months ended June 30. Earnings before interest, taxes, depreciation and amortisation fell 47% to ₹1,083 crore.

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    Representational image
    New Delhi: Reliance Retail posted a 17% fall in first quarter sales, as half the stores of the Reliance Industries unit were shut and another 29% operated only partially during the lockdown period.

    Operating profit of the country's biggest retailer by revenue almost halved in the quarter, as its fixed cost remained almost similar to the pre-lockdown period despite store closures. The company posted net sales of ₹31,633 crore in the three months ended June 30. Earnings before interest, taxes, depreciation and amortisation fell 47% to ₹1,083 crore.

    Reliance Retail said almost 80% of its nationwide network of 11,800 outlets remained either completely or partially shuttered during the lockdown.

    Against the backdrop of a challenging environment, where store functioning and digital commerce fulfilment were severely impacted by lockdown and restrictions, the performance, “whilst muted by the operating context, was well ahead of market,” the company said in a statement.

    Even though grocery and connectivity — involving recharge of Jio mobile accounts — segments of Reliance Retail witnessed 21% growth year-on-year due to pantry loading and higher data usage, consumer electronics and fashion businesses bogged down the overall performance.

    “Consumer electronics and fashion and lifestyle businesses were hit particularly hard by the cessation of activity during the lockdown period, as stores were closed for the most part of the quarter,” the company said.

    Reliance Retail rolled out the high-profile digital commerce business of JioMart in late May, selling grocery in 200 cities. “A hallmark of the quarter was the significant and swift progress across the breadth of the business on activating digital commerce and strengthening omni-channel capabilities, to supplement the strength of the existing offline store network,” the company said.


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