Click to play videoAhmedabad: The retail slowdown may have found its worst victim. According to sources, Reliance has had to slowdown expansion and even downsize its hypermarkets, just two years since the launch of its retail operations.
In Ahmedabad, it is leasing out an entire floor to other retail players, possibly an American restaurant. The hypermarket that started out over three floors is being reduced to two, the third being leased out.
When contacted by CNBC-TV18, the company confirmed the move.
An RIL spokesperson said in an email: "We started the mart with 1,55,000 square feet space. We have right-sized to 1,00,000 square feet. We plan to use the excess space generated for other retail ventures in the pipeline."
Analysts say the company started several formats simultaneously and is now cutting down its unviable operations. They believe that while the smaller formats are doing well, the company may have to strike deals and lease out space to other players in areas where they owned significant space.
While the company scales down its plans, employees too might need to scale down their expectations. According to sources, Reliance Retail has not yet announced its increments for this year.
While bonuses have been announced for employees who joined the company before July 31, increments have been due since March-April.
(With inputs from Nachiket Kelkar in Mumbai)
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