Reopening 'Future' stores a work in progress for Reliance Retail

Reliance Retail is still in the process of opening the stores it took over from Future Group towards the end of February. In all, it had taken control of 947 stores of Future Group, and planned to open them within 45 days. While some stores are functioning under the banner of Smart Bazaar -- a grocery retail outlet of Reliance Retail -- others remain shut as Reliance Retail is yet to take a call on their business viability.

According to various sources in the know, Reliance Retail has taken stock of the Future Group stores and is in the process of taking a decision on eliminating some stores that may be of similar formats and in vicinity of its own stores. For example, Reliance Trends and Future Group's Central and fbb operate in the apparel and lifestyle fashion segment. fbb stands for Fashion @ Big Bazaar.

A source said there was a possibility that Reliance may trim the sizes of some of its stores and may also look at shutting down some locations. At present, the company continues to pay the lease on all stores it took over from Future Group. “They (Reliance Retail) have finished their due diligence on each and they may give up some space as they may not want to have such large stores in every location,” said a source in the know. 

Also, Future Fashion and Lifestyle chain of apparel and fashion stores, as well as Central, which were large-format stores, may not be used for Reliance Trends, as these stores are smaller. Another source added that Reliance Retail was in the process of getting its fixtures like freezers and escalators in place for these stores.

“They are running some of the stores as full-fledged stores. It takes time to get all the racks and merchandise as per the store,” said the source. Another source added that the old fixtures and stock in stores, which belonged to Future Group and banks, had either been returned or were in a warehouse.

In February, Future Group had said it received termination notices for a significant number of stores. On March 9, Future Retail in a stock exchange filing said it had received termination notices for 947 stores, which include 342 Big Bazaar and fbb outlets, and 493 small format stores, including Easyday and Heritage stores.

In addition, Future Lifestyle Fashions had also said, in its exchange filing, that it received termination notice for 78 Brand Factory stores and 34 Central stores. Future Group had a total of around 1,500 stores across all brands.

In December 2020, landlords had initiated termination notices of the lease agreements and repossession of the premises of the stores that belonged to Future Group, a source had earlier told Business Standard. He had further added that several landlords had approached Reliance, which then had signed leases with landlords wherever possible. Post this, the stores were sub-leased to Future Group. Later, when Future Group was not able to pay the lease rentals on these properties, Reliance went ahead and took over these stores in February.

The story so far

• In February, Reliance Retail took over 947 stores sub-leased to Future Group

• Future Retail’s 342 Big Bazaar and Fashion @ Big Bazaar (fbb) outlets, and 493 small-format stores, including Easyday and Heritage stores, were among those taken over 

• Future Lifestyle Fashions had also received termination notice for 78 Brand Factory stores and 34 Central stores

• Future Group had a total of approximately 1,500 stores