Reliance Retail has temporarily shut its department store chain, Centro, as part of a strategic overhaul to prioritize its in-house brands and licensed labels. This move aligns with the company’s vision to develop a shop-in-shop retail model by leveraging partnerships with 80 international brands like Superdry and Gap, alongside its proprietary brands such as Azorte and Yousta.
Launched in September 2022, Centro emerged as a rebranded version of Future Group’s Central stores, which Reliance acquired after taking over their leases. The chain offers a mix of over 450 domestic and global brands, competing directly with Shoppers Stop and Dubai-based Lifestyle International. While Reliance has not disclosed if external brands will return after the revamp, industry sources suggest the focus will shift significantly towards Reliance’s own product lines.
The company has already shuttered three Centro outlets, with 24 more closures expected by the end of the month. In a communication to brand partners, Reliance cited redevelopment plans and requested the removal of inventory, fixtures, and promotional materials.
Reliance Retail, which operates a vast network of 18,946 stores across food, electronics, and fashion, reported a 3.5% revenue dip in the September quarter. The decline was attributed to weak demand in the fashion and lifestyle segment and a deliberate shift towards higher-margin wholesale operations.
Commenting on the situation, Dinesh Taluja, Reliance Retail’s Chief Financial Officer, acknowledged the challenges. "While the macroeconomic environment remains weak, and we’ve seen a slowdown in apparel and footwear, we are focusing on strengthening our design capabilities and leveraging technology to streamline the supply chain. These investments will ensure our market leadership in the long term," he stated during a recent analyst call.
Reliance Retail has also scaled back its store expansion plans, adding just 110 new outlets in the first half of the fiscal year, a significant drop from the 610 stores opened during the same period last year. This cautious approach reflects the company’s focus on optimizing existing formats and repositioning its portfolio for sustainable growth.
