Reliance Retail deploys AI-Driven ‘Smart Discovery’ to unify omnichannel experience

Reliance Retail deploys AI-Driven ‘Smart Discovery’ to unify omnichannel experience

https://www.dfupublications.com/index.php/component/search/?searchword=Reliance%20Retail&ordering=newest&searchphrase=all&limit=2017 February 2026, Mumbai

In a move to bridge the divide between physical browsing and digital convenience, Reliance Retail has initiated a pilot for a high-tech search and discovery platform across its major apparel formats, including Trends and Yousta. Revealed on February 16, 2026, at the Retail Leadership Summit in Mumbai, this initiative utilizes in-store QR codes to unlock a digital interface where customers can navigate vast inventories and receive personalized product recommendations. By integrating real-time preference mapping into the physical store journey, the retailer aims to recapture ‘share of wallet’ from pure-play e-commerce rivals like Amazon and Flipkart.

Navigating margin pressure with technological integration

The pilot comes as a strategic response to narrowing core retail margins, which moderated to 8 per cent in Q3 FY26 from 8.6 per cent a year earlier. While Reliance Retail reported a robust gross revenue of Rs 97,605 crore for the December quarter - an 8.1 per cent Y-o-Y increase—escalating competition from quick-commerce giants like Blinkit and Swiggy Instamart has forced a shift toward higher operational efficiency. The objective is to bring the store and online experiences closer, providing context-driven journeys, stated Damodar Mall, CEO, Grocery Retail, Reliance Retail. This ‘Smart Discovery’ model is slated for a wider rollout to the Smart Bazaar chain later this year, potentially setting a new benchmark for 5G-enabled retail environments.

Data-led expansion into quick commerce and Tier-II Hubs

The integration push is part of a broader infrastructure upgrade that has seen Reliance operationalize over 600 dark stores to support sub-30-minute deliveries through JioMart. With a registered customer base now exceeding 378 million, the company is leveraging its massive scale to penetrate Tier-II and Tier-III cities where digital discovery acts as a primary sales funnel. This tech-first approach is projected to drive a 12.8 per cent CAGR for the broader Indian retail sector through 2034, positioning Reliance not just as a brick-and-mortar giant, but as an agile, AI-native ecosystem capable of servicing specialized needs across diverse consumer cohorts.

Operating over 19,300 stores across grocery, fashion, and electronics, Reliance Retail is India's largest retailer. With a Q3 FY26 net profit of Rs 3,558 crore, the firm is currently focusing on omnichannel synergy and a Rs 40,000 crore investment in food parks. Established in 2006, it now serves 349 million active customers.

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