Reliance Retail is sharpening its focus on digital commerce as it aims to improve operating margins over the next two years, betting that investments in its online and omnichannel businesses will begin delivering stronger returns. The company said its digital platforms, including JioMart and Ajio, are expected to play a bigger role in driving profitability as customer acquisition costs moderate and operational efficiencies improve.
The retailer's strategy comes even as higher investments in digital commerce weighed on its June quarter earnings. Reliance Retail reported a 14.2 per cent year-on-year decline in net profit to Rs 2,806 crore, while revenue from operations rose 8.2 per cent to Rs 79,745 crore. The company attributed the decline in profitability to continued investments in expanding its digital and quick commerce ecosystem, which it views as a long-term growth driver.
Digital Push To Drive Long-term Growth
Reliance Retail said its focus over the next two years will be on improving unit economics, increasing customer engagement and leveraging technology to enhance margins across its retail formats. The company expects higher digital adoption, better supply chain efficiencies and a stronger omnichannel presence to support profitability while continuing to expand its market share. Executives indicated that digital commerce has already begun showing encouraging traction, providing confidence in the company's long-term strategy.
India's retail sector is witnessing rapid growth in e-commerce and quick commerce, prompting leading retailers to invest heavily in technology, logistics and last-mile delivery. Reliance believes these investments will position it to capture a larger share of the country's expanding digital retail market, where online penetration is expected to rise significantly over the coming years. |
