Reliance Retail enters Indian footwear market with V Retail acquisition

V Retail operates 32 stores under the Center Style brand.

The acquisition of V Retail will allow Reliance Retail to enter India’s footwear market which is expected to grow in the coming years following its recovery from the pandemic, according to GlobalData.

Raviteja Neralla, retail analyst at GlobalData, Reliance Retail’s move came when the footwear market is experiencing a pent-up demand from consumers in the 16 to 34 years age group who are eager to go out of their homes more often.

The Indian footwear market is expected to increase by 13.9%, and 10.2% in 2023 and 2024, respectively, following the estimated 22% growth in 2022, according to GlobalData’s Market Analyzer.

“Reliance Retail’s acquisition of V Retail is part of its broader ambition to capture diverse facets of the growing Indian economy. In India, the fear of recession is not as strong as it is in the west. As a result, Reliance Retail found it more attractive to increase investments in the Indian market,” Neralla said.

Neralla added that V Retail is an attractive bet for Reliance Retail because of its large product assortment with a variety of brands, noting its partnership with American lifestyle brand TOMS in May 2022.

V Retail manages 32 stores across Andhra Pradesh, Karnataka and Telangana under Centro Style, a large proportion of which are located in Hyderabad.