Winning Bizness Desk

Mumbai - Reliance Retail is about to launch a new retail store brand 'Smart Bazaar' at across all Future Group locations. The store will focus more on everyday wear and general merchandise than the existing smart supermarkets from Reliance Retail. Since the last week of February, Reliance has closed hundreds of Future Group stores and started issuing notices for termination of sub leases for non-payment of rent. Reliance had become a tenant of these locations since early last year after Future Group was unable to pay rent to its landlords. These were all on lease then.

Stores will be bigger Reliance Mall

Future Group's large stores like Central are spread over 60,000 square feet. These are now being expanded to 100,000 square feet. Reliance Group is now looking at its current format like Reliance Mall. It also includes a department store, a mix of all formats. In return, Future Group has offered Reliance to operate a central format as a Future Group franchise, so that the brand name remains. Each central has 80-100 independent brands, operating as shop-in-shop for a fee. Reliance will roll out its smaller retail brands like Seven Eleven (7-11) and Reliance Fresh to replace Future Group's kirana stores Easy Day and Heritage.

Physical assets being handed over to Future Group

Reliance is currently moving all physical assets, such as air-conditioners, lights, freezers, billing machines, trolleys and even escalator machines, from store locations. Reliance is handing them over to the Future Group. These assets will now be given to banks for payment of loans of Rs 17,000 crore. This is because Future Group has defaulted. Reliance has been paying for the stock of most Big Bazaar, Easy Day, Heritage and FBB stores for the past one year.