Anticipating competition from the Bharti-Wal-Mart cash-and-carry combine, Reliance Retail has decided to roll out similar wholesale trade outlets that cater to smaller retailers among other business buyers. Reliance's cash-and-carry outlets are expected to start next year, around the same time as Bharti-Wal-Mart begins operations.

For now, the company, which has opened around 250 retail stores till date, will continue to focus on its existing roll-out strategy.

"Cash-and-carry is second priority for us. Our first priority is the front-end business - the grocery stores, hypermarkets and speciality stores for consumer electronics. However, we will open our first cash-and-carry outlet next year," said Bijou Kurien, president and chief executive, Life Style, Reliance Retail.

Earlier this month, Bharti and Wal-Mart, the world's largest retailer with the most sophisticated technology in back-end operations, signed a 50:50 joint venture for opening 10-15 cash-and-carry outlets, with each store to be spread across 50,000-100,000 square feet of space. These outlets will sell fresh produce, groceries, stationery, footwear and apparel.

Reliance Retail is also planning to sell similar goods at these cash-and-carry outlets. The company is a wholly-owned subsidiary of the Mukesh Ambani-promoted Reliance Industries [Get Quote] and will invest up to Rs 25,000 crore (Rs 250 billion) in the first phase.

Cash-and-carry outlets are for wholesale trade or business-to-business segment. Only those with a sales tax certificate can purchase goods at such outlets. Cash-and-carry outlets typically cater to retailers, fruits and vegetables resellers, restaurants and hotels.

Reliance Retail is also working on its specialty stores. It is planning a lifestyle store in New Delhi in the next few months.

"The store will have a variety of categories such as perfumes, colognes, cosmetics and books. These stores will be interactive and target the youth," Kurien added.

The lifestyle stores will be located in malls and high streets, and will retail mid to premium brands. The stores will not sell luxury brands.

Kurien added that private labels were an important and a critical strategy for Reliance Retail. Private labels guarantee maximum margins to retailers and are popular at chains such as Big Bazaar (owned by the Future group and promoted by Kishore Biyani) and Vihal Mega Mart (owned by Vishal Retail and promoted by RC Agarwal).