RIL helps Sahakari stores treble sales

Tie-up galvanises the co-operative stores' performance.

Two and a-half months after Mukesh Ambani-controlled Reliance Industries (RIL) had started handling the supply chain management of the state-owned Sahakari Bhandar, the revamped co-operative stores have seen their revenues and customer inflows treble.

In April this year, Reliance reached an understanding with Sahakari Bhandar to manage the supply chain for the latter's 19 stores in the city. The deal is a closely guarded secret. However, it is believed that Reliance has not invested any money yet.

Sahakari Bhandar is a co-operative venture having a chain of 19 supermarkets in Mumbai. Over the years, it has built its brand on affordability. But like all co-operatives, its stores look run-down and operate on thin margins.

The April tie-up, part of RIL's retail gameplan, has galvanised Sahakari Bhandar.

For example, the stores often had a problem of stock-outs owing to irregular payments to suppliers.

With Reliance stepping in, this has been sorted out and product supply is no longer a problem. Also, quicker replenishment of stocks due to RIL's smoothly managed supply chain has removed one of the main problems that customers used to face.

Although both RIL and Sahakari Bhandar are tightlipped, sources close to the development said sales had more than trebled.

The tie-up with Sahakari Bhandar works well for Reliance, which is betting big on retail, as it provides a presence in some of the best locations in the metro without the hassles of finding the correct property.

Courtesy Reliance, the beleaguered Sahakari Bhandars are now giving a new spanking look. So far, Mukesh-headed company has reworked three of the 19 outlets in Mumbai, with work in seven others underway.

These outlets are likely to reopen over the next one month, after which the next round of renovation at the other outlets, including the head office in Colaba, would begin.

While the improved shopping ambience has definitely attracted more people, even from the surrounding localities, the other reason why sales have gone up is also attributed to the now seven day week the revamped stores follow unlike the five day week earlier.

The new stores have also shifted to a 12-hour working day "� from 9 am to 9 pm "� against the earlier 10 am to 6 pm timing. This has brought in a whole new segment of consumers into the stores, mainly the working couples and professionals who found it almost impossible to visit the stores earlier.