Big Bazaar Shuts Down Across India: Reliance Will Rebrand 200 Big Bazaar Outlets & Run Operations (2024)

FAQs

What happened with Big Bazaar and Reliance? ›

An industry executive said that the 30 stores still remaining with FRL can be used to redeem the vouchers. The Reliance-Future deal didn't take off after secured creditors of Future Retail refused to give their nod. However, the shareholders and the unsecured creditors had earlier approved the deal with Reliance.

Most of the Big Bazaar stores owned by Kishore Biyani have been closed and only 30 stores are operational.

“Smart Bazaar will sell similar goods that Big Bazaar used to merchandise, the locations of the stores remain the same, and Big Bazaar customers with loyalty programme Future Bazaar cards and coupons may also get to utilize the balance in wallets to shop at Smart Bazaar," the letter added.

Reliance to rebrand and open majority of 200 stores in next 7 days. Future Retail has shut most of its Big Bazaar stores since February 25 (Friday) and its website is also down as it missed lease payments to Reliance Industries (RIL).

Financial And Legal Struggles. The deal got mired in a legal conflict when Amazon objected to it. Already cash-strapped, Future Group has been defaulting on payments to lenders and struggling to keep its stores open.

Conclusion; The main reason why big bazaar failed is tough competition from the other retailers. Although they were strong in pricing & customer loved to shopping with them. The rising competition from Jiomart, D mart, and E-commerce websites have left big bazaar with low market share.

However, the deal was called off on 23 April 2022 after FRL's creditors voted against going forward with it. Reliance Retail launched its new retail format by the name of Reliance Smart Bazaar, that cater to consumer needs. It offers online and offline services to the customer.

Kishore Biyani, the founder and CEO of the parent organisation, the Future Group, founded Big Bazaar in 2001. Kishore Biyani holds the position of Non-Executive Vice Chairman of the Company's Board. He serves as the Group CEO of the Future Group and the Managing Director of Future Retail Ltd.

bigbazaar.com's top 5 competitors in March 2023 are: patelbros.com, sparindia.com, bigbazaaronlineshopping.in, bigbasket.com, and more.

There can be many reasons companies choose to rebrand, or they may feel that their current branding is outdated and no longer reflects their company values or mission. Another reason can be to appeal to a new target audience or distance themselves from any negative connotations their old brand might have.

Why is rebranding done? ›

The rebranding process begins when a company or organization needs to evolve and shift – often times seeking to drive growth. These efforts could begin because they want to reposition themselves within their current market, they want to broaden their appeal, or they may be looking to expand into a new space.

Rebranding pays out over the lifetime of your company, enabling you to attract better customers, with more authority, while commanding higher prices for your products or services. Furthermore, customer loyalty, market leadership, and brand equity position your business for an exponential return on investment.

Today, a wide portfolio of brands in food, FMCG and fashion, complement the country's pioneering modern retail networks. More than 600 million customer visits are recorded across the 2,000 Future Group retail stores, covering over 24 million square feet of space in over 400 cities and towns.

India's foreign direct investment rules prevented Amazon from rescuing debt-laden Future Retail directly; it instead funded privately held Coupons so that Biyani could use the money to steady the debt-laden Indian retailer and thus, indirectly exercised some control over Retail.

The closings come amid last month's Chapter 11 bankruptcy filing by Tobago Bay Trading Co., an Atlanta-based owner of 70 World Bazaar stores. The seven stores closed were in Orlando, Altamonte Springs, Kissimmee, Daytona Beach, Lakeland and Lake Wales.

Reliance took control of over 200 Big Bazaar stores, 34 Central stores and 78 Brand Factory outlets after Future Group defaulted on payments...

Future retail is currently undergoing insolvency resolution.

FabFurnish was launched as an online retailer of furniture, décor, and home appliances in March 2012 by Vikram Chopra, Mehul Agrawal, and Vaibhav Aggarwal. The company was headquartered in Gurgaon, NCR.

While Future has more than 1,700 outlets, Reliance will rebrand 200 of the retail company's Big Bazaar stores. The remaining stores will continue to be run by Future Retail.

What are the disadvantages of Big Bazaar? ›

Chandni Chowk, Delhi

It is the largest wholesale market where you can find endless shops and stalls of food, jewelry, electronics, spices, art, antiques, souvenirs, and many knick-knacks. A famous spot is the Khari Baoli. It is the largest wholesale spice market in Asia which was built during 1650.

Kishore Biyani, the man who founded Big Bazaar, resigns as Executive Chairman of Future Retail - BusinessToday.

Big Bazaar, which ranks at No. 9, is rated high on being outstanding, has grown both organically and inorganically and is the leading organized retail brand in the country.

We currently operate with 55 stores in 51 cities and in 13 states with a retail area space spread across approximately 4.6 Lakhs Sq. Ft. with a strong presence in Eastern India, especially North East.

Den Networks and Hathway Cable & Datacom Ltd.

Reliance Jio bought a majority stake in Den Networks, Hathway Cable, and Datacom in October 2018. Jio acquired a 66% stake in Den Networks with a primary investment of INR 2,045 crores and a 51.3% stake in Hathway Cable & Datacom Ltd.

What is rebranding? Rebranding is when your company rethinks your marketing strategy with a new name, logo, or design, with the intention of developing a new, differentiated identity in the minds of customers and other stakeholders.

There are three main types of rebranding in marketing: a brand merger, a brand refresh, and a full rebranding. These are needed for different reasons, and the level of work needed is different for each type.

What are the problems in rebranding? ›

Probably the most common challenges of a re-brand boil down to a simple problem: creating a new brand identity that benefits both your business and your audience. Re-branding is a major project, and if you don't get your identity right, starting over can lead to further challenges and problems down the road.

Repackaging is only legal if a written agreement exists between the product's original manufacturer and the business that wishes to rebrand. Otherwise, the market should be willing to pay a markup. Markup, in this case, refers to the product availability, service, better packaging, manuals, support, and warranty.

The most common forms of rebrand strategy failure

Sometimes it just takes an organization too long to transition the brand. Sometimes this is due to a lack of focus. But when it takes an organization too long to fully transition branded assets, the result is brand fragmentation and customer confusion.

Branding also involves recognition of a company's overall message, which is woven into design elements and marketing features. Rebranding is the term used to describe taking an existing brand and changing or altering its message and design elements.

Dunkin. Say the word Dunkin, and you automatically think about donuts. Although that's a symbol of strong brand awareness, the brand decided to drop the word “donuts” in a rebrand to modernize customers' experience. They changed the look of their stores, got a new logo, and freshened up their brand messaging.

1. Reliance. India's leading retail company, Reliance Retail, is one of the country's best-known retailers. Mukesh Ambani founded this retail company in Mumbai, India, in 2005, and it now has and over 45 subsidiaries that are among India's leading retail enterprises.

It is predicted that online grocery shopping will continue to increase at an annual compound growth rate of 37.1% during 2021-2030. Another significant reason for the increase in online grocery shopping is increasing internet access along with cheaper smartphones and low data tariffs in India.

In 2023, retail sales worldwide are forecast at $30.3 trillion (4.5% more than this year). From 2020 to 2026, total retail sales are expected to rise by $9.2 trillion. These numbers are not a surprise. During the year of the pandemic, customer behaviour changed, and so did its demands.

Store Fronts Will Become Virtual

By 2030, store windows will be used in conjunction with smartphone devices to create animated and curated visual output, as well as leasable space to generate more income. Visual content will vary depending on shoppers' preferences and behaviours, and even time of day.

Digital technology – such as smart mirrors, digital mannequins, QR codes, interactive apps, and more – will become a staple of physical retail in the future of shopping, allowing brands and retailers to provide guided digital journeys through brick-and-mortar stores.

Will Amazon buy Future Retail? ›

Amazon has been against Future Group and Reliance Group's deal that was inked in August 2020 under which Reliance Retail will buy Future Retail's stores and warehouses for ₹24,713 crore on grounds.

Kingswood Capital Management, LLC

Cost Plus World Market / Parent organization

There's a Reason Its Prices Are So Low

A majority of Cost Plus World Market's assortment is actually developed in-house. Its buyers travel to over 50 countries around the world, keeping an eye out for beautiful gems at bazaars and souks.

MUMBAI: Reliance Industries, the country s largest private sector company, has decided to shut down all the petroleum retail outlets owned by it directly as surging crude prices and the absence of government subsidies have made operations unviable.

Negative market sentiment

Abhijeet from Tips2trade attributed the weakness in RIL stock to highly volatile market due to a potential banking sector collapse in the USA amid rising interest rates, which has resulted in a sharp fall across majority of the stocks including Reliance Industries.

In February 2022, Reliance Projects & Property Management terminated sub-leases of about 800 Future Group stores and took possession as Reliance alleging Future Group failed to make rental payments for more than a year amounting to Rs 4,800 crore. Amazon termed this as a "sham transaction."

RIL-FRL deal cancelled: Key implications and what's next for the Future group. Reliance Industries Ltd (RIL) called off its deal to purchase Future Group's assets following rejection of the proposal by a majority of len...

That deal, Amazon argues, came with non-compete clauses that prohibited Future from selling retail assets to certain rivals, including Reliance, run by India's richest man, Mukesh Ambani. The deal's terms call for disputes to be settled by the Singapore International Arbitration Centre.

The retail company is in talks to buy Subway India for $200-250 million or Rs 1,488-1,860 crore. This comes as the restaurant chain is undergoing a restructuring process under chief executive John Chidsey and is looking to cut costs and global headcount as sales take a hit.

Why did Reliance takeover Big Bazaar? ›

Citing unpaid payments by Future, Reliance has taken control of operations of some 200 Big Bazaar stores and has plans to seize another 250 of Future's retail outlets. Combined, they represent the crown jewels of Future's retail network and around a third of all Future outlets.

The company has attracted controversy for reports of political corruption, cronyism, fraud, financial manipulation, and exploitation of its customers, Indian citizens, and natural resources. The chairman of Reliance Industries, Mukesh Ambani, has been described as a plutocrat.

Reliance Industries's competitors include bp, Shell, Total, Enbridge. Reliance Industries ranks 20th among 802 active competitors. In 2021, the company recorded annual revenues of $185.12B and a net profit of $16.14B.

Amazon had agreed to purchase 49% of one of Future's unlisted firms last year with the right to buy into flagship Future Retail business after a period of three years to 10 years.

BENGALURU, April 10 (Reuters) - Companies led by Indian billionaires Gautam Adani and Mukesh Ambani, a British retailer and global asset reconstruction firms are among the 49 entities in the fray to acquire Future Retail Ltd (FRTL.NS), the debt-laden Indian retailer said on Monday.

Reliance Retail and Adani Group JV have shown interest in acquiring Future Retail. As many as 49 applications have been received so far in acquiring Future Retail.

MUMBAI : Shareholders of Future Retail Ltd and proxy advisory firm InGovern Research Services have written to the markets regulator demanding immediate action to protect hundreds of thousands of Future shareholders and prevent the company from being referred to an insolvency court, which may wipe out shareholders.