Reliance Retail begins layoff as JioMart B2B consolidation starts

Following the METRO buy, it shuts a few warehouses as part of the integration exercise

Reliance Retail has started consolidating its JioMart business-to-business vertical, along with METRO Cash & Carry India operations that it recently acquired. In order to avoid overlap, it has shut down some of its warehouses, according to a person in the know.

According to multiple sources, the company has also laid off some of its employees across its retail vertical, and some have been put on a performance improvement process.

A source said that these appraisals or exits may not be specific to the B2B segment and it may be across the retail business. These employees form only a fraction of the company’s 400,000 workforce in retail. Those who have been asked to leave are mostly from the sales team.

Business Standard could not ascertain the number of people who have been asked to leave the company.

“At this time of the year, these are normal operational developments across organisations,” another source said.

An e-mail sent to Reliance Retail remained unanswered until the time of going to press.

The source added that Reliance Retail's goal is to serve small merchants and the alignment of the JioMart B2B business under one umbrella, following the acquisition of the METRO Cash & Carry India operations. “These measures will avoid overlap and ensure that both entities don’t end up serving the same kiranas and small merchants through separate channels,” the person said.

“These steps will strengthen business development and increase operational efficiencies by enhancing synergies between the businesses and improve speed to market. This will not only help Reliance reach out to more kiranas and small merchants across India and empower them through digitisation but will also deepen its presence in the segment and help grow the combined business, as there will be a limited rationalisation of footprint and resources,” the source added, saying Reliance Retail is focused on expanding its market leadership in India’s B2B space. It will continue to add new wholesale channels, as well as expand its delivery footprint by onboarding new merchants on eB2B by leveraging the capabilities of both businesses, the source said.

Reliance Retail Ventures’ (RRVL’s) got all clearances to acquire METRO Cash & Carry India for a cash consideration of Rs 2,850 crore.

After completing the acquisition in March, Reliance Retail said in its release, that through this acquisition, it gets access to a wide network of METRO India stores across key cities, a large base of registered mom-and-pop stores (kiranas), other institutional customers, and supplier network.

METRO Cash and Carry India reaches over 3 million B2B customers in India, of which 1 million are frequently buying customers, through its store network and eB2B application.

Reliance last year announced its entry into the fast-moving consumer goods market and has already relaunched Campa Cola after acquiring it from Pure Drinks; it has also launched its own brands in the home and personal care space.