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The company is reportedly considering restructuring its business operations in the country by establishing a fully-owned subsidiary
UK-based footwear brand Clarks has ended its two-year joint venture with Reliance Retail, leading to the closure of all its stores in India. Sources close to the situation revealed that the decision stems from significant disagreements between the two parties regarding various terms of the partnership.
Clarks Reliance Footwear Pvt Ltd, the joint venture, operated 32 exclusive Clarks-branded stores across major Indian cities, including New Delhi, Mumbai, Bengaluru, and Hyderabad. The shutdown of these stores is seen as Clarks' "exit strategy" from the Indian market, according to one source. Despite the closures, Clarks may not be exiting India entirely. The company is reportedly considering restructuring its business operations in the country by establishing a fully-owned subsidiary. Under India's single-brand retail policy, Clarks could re-enter the market with full foreign ownership, similar to global brands like Apple, H&M, and Ikea. This would allow Clarks to operate through exclusive stores, e-commerce, and franchisees under a unified license, though it would need to meet the sourcing requirements stipulated by Indian regulations.
Clarks has had a presence in India since 2009, initially partnering with Future Group before switching to Reliance Brands in 2022 due to financial difficulties faced by the Biyani-led conglomerate. Neither Clarks nor Reliance Retail has commented on the recent developments.
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