Reliance Taking Over Kishore Biyani’s Future Will Result in a Mammoth Retailer. Here is How

The Biyani-led conglomerate’s revenue-per-store rose at a slower pace than Reliance Retail, but it still earns more.

Reliance Retail was able to scale up its retail operations with average revenue per store rising by 42 percent. Reliance Retail added 2 million square feet area and ended the year at close to 15.5 million sq. ft. The Future Group, having added 2.3 million sq. ft., now operates 20.2 million sq. ft. An average Reliance Retail store is 4,040 sq. ft. compared with 14,777 sq. ft. for Future Group.

Both the retailers managed to squeeze more margins from operations in the last financial year. While Reliance Retail’s EBIT margin expanded by 200 basis points (100 basis points = 1 percentage point), Future Group’s improved by 130 basis points.

Reliance Retail, on the other hand, operates close to 11,784 stores split across value fashion, footwear, premium fashion, grocery, jewellery, electronics, connectivity, etc. In the last financial year, Reliance Retail achieved a turnover of Rs 1.63 trillion. Reliance Retail also works as the master distributor for Jio connectivity services.

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