Spencer’s Retail, part of RPG Group, has closed down around 100 supermarkets in the last one year to consolidate its position and to open more hypermarkets. The company plans to open 15 hypermarkets in FY 11, while opening supermarkets is not much on its agenda.
Spencer’s Retail has so far focused on the grocery and food business, but it is now shifting its focus to speciality formats that consist of apparel, music and cafe business.
The company has exclusive franchise tie-ups with three international apparel brands — cult youth brand Ecko Unlimited, UK-based kids brand Ladybird and premium casual wear brand Beverly Hills Polo Club. The company is planning to open 20 exclusive Beverly Hills Polo Club stores in the NCR region, Punjab and Mumbai. It will launch four exclusive stores of Ecko Unlimited and two exclusive stores of Ladybird in the NCR region.
The apparel business contribution, less than 10 per cent now, is pecked to be almost 30 per cent of Spencer’s overall revenues in three to five years. For its music format, Music World, which already operates 60 stores, Spencer’s is opting for the shop-in-shop expansion at stores such as Future Group’s Big Bazaar and others.
The retailer last year formed a joint venture with Boston-based cafe chain Au Bon Pain to open fast casual dining and bakery chains in India and currently operates two Au Bon Pain outlets in Bangalore. This format is likely to have a national rollout in another two to three years. Spencer’s capex for FY ’11 is Rs 100 crore.
— IndiaRetailing Bureau