Reliance Retail shuts down Centro locations to focus on in-house brands

Reliance Retail is temporarily closing several stores under its department chain, Centro, as part of a strategic repositioning aimed at enhancing focus on its own brands and labels, many of which it has introduced in India as a licensed partner, as reported by The Economic Times.

In September 2022, Reliance Retail rebranded Future Group's Central stores to Centro, taking over leases at locations where Future Group had previously surrendered properties. So far, Reliance has shut down three Centro outlets and has plans to close an additional 20 by the end of this month. According to sources, companies with inventory in these stores have been instructed to retrieve their goods and fixtures in preparation for renovations. A letter sent by Reliance Retail to its brand partners confirmed that all Centro locations will pause operations during this revamping process. The letter also directed brands to remove their merchandise, promotional materials, and other items from the outlets.

While it remains uncertain whether local and international brands will be included in the redesigned stores, reports suggest that Reliance is planning to introduce a shop-in-shop model focused on its brands. These include names like Azorte and Yousta, alongside international labels such as Gap and Superdry, which Reliance Retail has acquired or partnered with recently.

Currently, Centro carries around 450 local and global brands and competes with other department store chains, such as Lifestyle International (based in Dubai) and Shoppers Stop, owned by the Raheja Group. Despite a slowdown in retail sales expansion—growing by just 4 percent last year after the post-COVID-19 surge in consumer spending—Reliance Retail continues to be a dominant player in the Indian retail market.

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