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Reliance Industries working on new hyperlocal store format

Wednesday, 18 Mar 2020
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Reliance Industries (RIL) is working on a kirana-driven delivery model for grocery under its new commerce strategy.
The concept was to leverage the network presence of kirana stores for RIL's e-commerce initiative. Under the initiative, RIL started JioMart pre-registration in December 2019. JioMart is a food and grocery e-commerce venture.
The company then announced the launch of new format grocery stores -- SMART Point -- which are supposed to complement the JioMart initiative. Eighteen such stores were launched in December 2019 in three areas, Navi Mumbai, Thane and Kalyan which are also the pilot regions for JioMart.
In its new format 'Smart Point' stores, RIL is using an interplay of delivery through kirana stores and own warehouse.
The Smart Point stores are a smaller version of larger Smart stores, with the same promise of minimum seven percent off on MRP on all products. In addition to assisting the JioMart venture, these stores will also function as a full-fledged grocery outlet, which will further deepen Reliance Retail network.
Currently, the larger format SMART stores are few and located far from a residential neighbourhood, but the Smart Point stores have been opened closer to the shopper.
As of 31 March 2019, there were 154 Smart stores across 96 cities, and now within a short time-frame, 18 Smart Point stores have been opened. This will augment RIL's grocery play.
The Smart Point store came across as a typical mini-market self-service neighbourhood food and grocery store. The assortment was spread across key categories of food, personal care, household cleaners, paper goods, and fresh fruits and vegetables.
Fashion and electronics will be offered via kiosk and point-of-sale counters located within the store. The size of the store was 1,500-2,000 sq ft and with two-three cash check-out tills. These stores have an adjoining delivery point, which resembled a small 150-200 sq ft area.
The deliveries are extending to medicines, and they are increasing the reach of fashion and electronics through kiosks in these new stores.
Smart Point stores have delivery points for JioMart orders. They are full-fledged grocery outlets (smaller version of large Smart stores) and have dedicated delivery points for JioMart app orders.
The customers on JioMart app will have the option to choose delivery via a nearby kirana store (same day delivery) or a SMART Point. These new stores offer a minimum 10 percent off on medicines.
The Smart Point stores leverage cross-selling. Each Smart Point store has an AJio kiosk that enables customers to order fashion and lifestyle products, a Reliance Digital point of sale for ordering electronics, and a Jio Payments Bank counter.
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