Spencer’s to expand in smaller cities with value retail format
1 min read 16 Jan 2023, 11:39 PM ISTThe shift to the value segment is part of the company’s plans to expand its presence beyond the 35 cities
PremiumNEW DELHI : Spencer’s Retail on Monday said it will enter the value retail format with the launch of hyper market chain Spencer’s Value Market to expand its retail footprint in India’s smaller cities.
Shashwat Goenka, the sector head for retail and FMCG, RP-Sanjiv Goenka Group, said a new consumer class emerging out of small towns wants to experience modern shopping, while seeking value. Spencer’s Value will offer discounts on a variety of assortments.
“A lot has changed over the last four to five years, and more so since the pandemic wherein a class of value-conscious consumers have come up. As we look to go beyond the 35 cities, we must adopt a model which will cater to this segment of consumers," Goenka said at a virtual roundtable on Monday.
To be sure, Spencer’s Retail operates two formats, its flagship general merchandise and food brand Spencer’s as well as Natures Basket. The company reported a turnover of ₹2,376 crore in FY22. Spencer’s operates 152 stores across 11 cities. Natures Basket, the more premium retail chain, has over 36 stores pan-India.
The shift to the value segment is part of the company’s plans to expand its presence beyond the 35 cities it is currently present in. The value format stores will sell fast moving consumer goods, food and personal care items, fruits and vegetables, general household needs and apparels.
The value segment will help the company capture a larger chunk of the organized retail market, which is still sub-10% of the Indian retail market.
“We expect this to be a very profitable and high-growth segment for us," Goenka said.
Te company has converted five existing Spencer’s stores into the value format in Warangal, Kurnool, Guntur, Bhimavaram, Vijayanagaram and Karimnagar. “Value conscious consumers in these cities are predominant. We will we converting 10 existing stores to value formats," he added.
In FY24, 50% of new Spencer’s stores will be in the value format. The firm will open 14-18 stores under the Spencer’s banner, including regular and value format stores, he said.
