The Dubai-based Landmark Group has tied up with Netherland’s Spar International to open the Dutch company’s franchisee stores to tap India’s booming retail market.
Landmark’s hypermarket chain, Max Hypermarkets India Pvt. Ltd, has signed a licence agreement to use the Spar brand name on hypermarkets and supermarkets that it plans to open in India.
Landmark plans to invest Rs200 crore in seven Spar-branded stores over the next two years, and the first hypermarket and the first supermarket will come up in Bangalore next month.
The Amsterdam-based Spar is one of the world’s largest food retailers, with more than 13,500 stores in 33 countries ranging from the Czech Republic to China.
“They have expertise in different areas of retailing—everything from the store layout to equipment to merchandising to the back-end and IT management,” said Viney Singh, managing director of Max Hypermarkets.
Singh said Landmark will pay a royalty fee—which he declined to specify—to Spar for using its brand for the stores and its technical expertise. Earlier this year, Landmark, which already runs department stores to home decor outlets in India, said it was in talks with a couple of foreign retailers to foray into India’s hypermarket and supermarkets business.