Spencer’s Retail Limited, a part of the Rs 19,000 crore RP-Sanjiv Goenka Group, will be launching a whole new apparel section next week, a company official said on Friday.
The multi-format retailer has been taking a string of measures to improve its performance as listing of this was expected soon.
“Spencer’s is right for listing for sure, it is absolutely right for listing. It clocked company level Ebitda positive for six month in a row. We are very optimistic about the performance of the company as we go forward,” said Group’s Chairman Sanjiv Goenka.
“Apart from food, apparel is a very good focus area for us. A vast range of products will be launched next week. Apparel contributes much higher margin than foods,” he said.
Spencer’s Retail (SRL), a wholly-owned subsidiary of power utility CESC, clocked average revenue per square ft per month to Rs 1,740 in the December quarter from Rs 1,452 during last fiscal.
“Rs 1,740 per square ft revenue is way highest in the industry. We hope that it will be a continuing sign. So we are very much getting set for a company net profit,” Goenka said.
The group expects that Spencer’s will turn PAT (profit after tax) positive by next fiscal year. The firm’s gross revenue stood at Rs 1865 crore at the end of last financial year, while Ebitda was at negative Rs 53 crore.
The retailer opened six stores in the October-December quarter and planned to open one before end of this current fiscal.