Reliance Retail, the retail arm of Reliance Industries, has temporarily closed its department store chain, Centro, to reposition the format and prioritise its own brands and licensed labels. The calculated step supports the company's goal of establishing a shop-in-shop model by utilizing alliances with 80 international brands, including Superdry and Gap, in addition to its own brands, Azorte and Yousta.With about 450 local and international brands, Centro is a rival to Shoppers Stop and Dubai-based Lifestyle International. Two dozen more locations are anticipated to close by the end of the month, in addition to the three that have already closed. Citing redevelopment plans, Reliance Retail wrote to brand partners requesting the removal of fixtures, inventory, and promotional items.

The Centro brand was launched in September 2022, taking over properties previously operated by Future Group's Central. According to The Economic Times report, Reliance Retail had converted these locations after acquiring the leases. While the company has not clarified if existing brands will return post-relaunch, insiders suggest the focus will shift toward Reliance’s own offerings.For the September quarter, Reliance Retail, which runs 18,946 outlets in the food, electronics, and clothing categories, reported a 3.5% drop in revenue. The decline was ascribed to both deliberate attempts to increase wholesale profit margins and poor demand in the fashion and lifestyle sectors."While the overall macro context remained weak and we had degrowth in the business on the apparel, apparel and footwear side, the fundamentals remain strong. We are investing in technology to improve our design to shelf cycle, we are improving our design capabilities so that these will help us continue our market leadership over a longer time frame," Dinesh Taluja, chief financial officer at Reliance Retail, told analysts last month.The report added that he company has also slowed its expansion, adding just 110 net stores in the first half of the fiscal year, compared to 610 during the same period last year.