Reliance Trends to add 1.5 million sq ft retail space

Mar 08, 2010

Reliance Trends, the large format apparel store chain of Reliance Retail, has recognised the growing affluence of smaller cities and towns in India. While it has revised its timeline for achieving the 100-store target, the emphasis is on A and B class towns.

Launched in 2007, the company had set a target of 100 stores in three years. However, after going slow during the economic downturn, now it hopes to open 100 stores by March 2012.

Reliance Trends will add 1.5 million sq ft retail space as it opens over 80 stores by that time. A considerable number of stores sized 15,000 to 25,000 sq ft will come up in the land bank available with Reliance Retail, the rest on leased and rented spaces.

"As per standards an investment of Rs 1,500 to 2,000 is required for each sq ft of retail space," said Akhilesh Prasad, senior VP of Reliance Trends.

The specialty chain is also laying emphasis on expanding in A and B class towns. Of the new stores 60 per cent will be in smaller cities and towns as they have the advantage of lower rentals and lesser property prices. At present, it has 18 stores in 13 cities, including Nashik, Ghaziabad, Jalandhar and Vishakapatnam.

In Tamil Nadu too, where it has launched its first store, the company is looking at smaller cities like Erode, Tirupur, Tirunelveli and Salem for its 15 new stores.

According to Prasad, senior vice-president of Reliance Trends the revenue in a smaller city is just around 20 per cent lesser compared to that in a metro store.