The Reliance Retail has declined to renew contracts of 1200 employees, which implies that few employees of the chain will be sacked. The company has, however, refused any jobcuts
As per sources, some of the Reliance Retail staffs being sacked are direct sales agents. The sources have also said that majority of Reliance Retail staffs are not on the payroll of the company.
Retail industry in India has already started taking a hit. Look at Pantaloon Retail or the well known Big Bazaar. These are the results announced by PantaloonR as on BSE
I would exit any PantaloonR shares and wait for the 'right entry point' before thinking about investments in Retail.
The consolidated results for the Year ended June 30, 2008
The Group has posted a net profit after minority interest of Rs 219.30 million for the year ended June 30, 2008 as compared to Rs 355.40 million for the year ended June 30, 2007. Total Income has increased from Rs 35654.80 million for the year ended June 30, 2007 to Rs 58665.00 million for the year ended June 30, 2008.