As the market deteriorates, India’s promising but elusive cash & carry retail sector has proven too much for Reliance Retail, which has announced it will jettison its cash & carry business along with its entire wholesale trading plans.
The cash & carry unit’s entire operational management staff are also headed for the door, reported India’s Economic Times, as Reliance tries to conserve funds in a worsening economy.
Reliance Retail’s 15 cash & carry stores were opened as a solo operation, while most other wholesale retail chains in India were operated as a joint venture between Indian firms and international retailers.
The lone project has apparently failed, and the Economic Times reported the company had decided not to burn cash on new business initiatives.
The 36-strong management team was headed by Harsh Bahadur, who had previously led German retailer Metro’s cash & carry operation in India.
Reliance’s exit of the market makes room for French retail giant Carrefour, who is reportedly in advanced talks with India’s Future Group on an wholesale joint venture in the country.
No comments yet