Reliance Retail and UK-based footwear brand Clarks have ended their two-year joint venture due to significant disagreements over the terms of their partnership. Sources indicate that the collaboration was not meeting expectations, leading to the decision to dissolve the joint venture.
As a result, Clarks has begun closing its stores across India. Recently, outlets in DLF and Inorbit Malls were shut down. The brand previously operated over 30 stores in major cities including Mumbai, Delhi, Bengaluru, Kolkata, and Hyderabad. Locations included prominent malls like DLF, Inorbit, Lulu, and Phoenix.
Reliance Retail, known for its extensive resources and market expertise, is often the partner of choice for international brands entering the Indian market. However, Clarks had been present in India for more than a decade, initially through a joint venture with the Kishore Biyani-led Future Group,’ which eventually faced bankruptcy. The partnership with Future Group began in 2011.
Despite a growing influx of international brands investing in the Indian market, Clarks’ operations in India are currently facing upheaval. It remains uncertain whether Clarks will continue in India through a fully-owned subsidiary or seek a new partner.
The joint venture, Clarks Reliance Footwear Pvt Ltd, managed 32 exclusive Clarks stores across Indian cities including New Delhi, Mumbai, Bengaluru, Lucknow, Hyderabad, and Chennai, as listed on Clarks’ website. According to other media websites, mall operators have confirmed the closure or imminent shutdown of Clarks stores in their centres.
While Clarks has not commented on future plans, a potential restructuring of its India business as a fully-owned subsidiary is a possibility, given India’s allowance for 100% foreign ownership in single-brand retail businesses. Companies like Apple, H&M, Uniqlo, Decathlon, and Ikea have successfully used this route to operate in India.
Clarks first entered the Indian market in 2009 through a joint venture with Future Group, later transitioning to a partnership with Reliance Brands in 2022 amid financial difficulties faced by the Future Group. Reports suggest Clarks’ dissatisfaction with the current arrangement with Reliance contributed to the decision to end the joint venture.
