As a result of the termination, Clarks will be closing all its stores in India, a move described by one insider as part of the brand’s "exit strategy" from the market.
Reliance Retail and UK-based footwear giant Clarks have ended their two-year joint venture, marking a significant shift in the retail landscape. The decision comes amid substantial disagreements over various terms of their partnership, according to sources familiar with the situation.
As a result of the termination, Clarks will be closing all its stores in India, a move described by one insider as part of the brand’s "exit strategy" from the market. The joint venture, known as Clarks Reliance Footwear Pvt Ltd, operated 32 exclusive Clarks-branded stores across major Indian cities including New Delhi, Mumbai, Bengaluru, Lucknow, Hyderabad, and Chennai.
Mall owners across India have confirmed the closure, with several indicating that Clarks has already shut down some of its stores or is in the process of doing so. This development has been verified by multiple sources in the retail sector.
Despite the closure, there are speculations that Clarks might re-enter the Indian market in a new form. A second source suggested that the company could restructure its operations as a fully-owned Indian subsidiary. India’s regulations permit 100 percent foreign ownership in single-brand retail ventures, allowing companies to sell a range of products under one brand name. This model has been successfully utilized by global companies like Apple, H&M, Uniqlo, Decathlon, and Ikea.
The single-brand retail route offers extensive opportunities for global brands, including exclusive stores, e-commerce, and franchise operations. However, it comes with certain conditions, such as sourcing a significant portion of products locally if foreign investment exceeds 51 percent.
Clarks initially entered the Indian market in 2009 through a joint venture with Kishore Biyani’s Future Group, known as Clarks Future Footwear Ltd. The partnership shifted to Reliance Brands in 2022 due to financial difficulties faced by Future Group.
