Smart & Smart Bazaar from Reliance Retail embrace premiumization
NEW DELHI: Reliance Retail’s value-format supermarket stores, Smart and Smart Bazaar, announced the broadening of their product selection to include premium items, signifying a strategy change towards catering to a more diversified audience.
International delicacies, posh body mists, and high-end serums are just a few of the upmarket items that supermarket retail chains have released, according to the retailer’s most recent quarterly report.
Dinesh Taluja, CFO of Reliance Retail, said, “That’s a trend we are seeing across consumption baskets where there is customer focus towards premiumization.” “What we are seeing is an increase in average bill values, fueled by premiumization, which also results in improved margins. Additionally, the non-grocery portion is growing, which is what drives this business’s profitability.
The biggest retailer in India, Reliance Retail, said that Smart and Smart Bazaar drove another quarter of consistent growth in its food division.
The ‘Full Paisa Vasool Sale,’ the flagship event of Smart & Smart Bazaar, had a 21% year-over-year rise in sales, with the candy, snacks, and home and personal care categories being the main drivers. The store said that distinct regional quirks provide excellent chances for development and that Smart & Smart Bazaar’s broader regional presence has proved to be a major growth driver.
Taluja said, “We are creating the nation’s deepest regional network of stores.” Thus, offering a national selection together with a localized assortment gives the buyer a very compelling value proposition.
Remarkably, in several places, sales in the run-up to Holi exceeded those during the usually joyous Diwali season. As you are aware, Diwali is the nation’s busiest consumption season. However, we saw for the first time that sales were particularly robust in a small number of locations prior to Holi, and he speculated that this was mostly due to the localized insights they had about the range and the communication they conducted locally.
Throughout the quarter, Reliance Retail’s Grocery New Commerce business sector had significant growth, fueled by the effective onboarding of new kirana partners via programs like the “Metro Kirana Utsav.” Furthermore, the HoReCa sector grew as a result of Smart & Smart Bazaar’s ongoing efforts to establish alliances with institutional clients, which allowed it to further diversify its sources of income.
