Spencer's Aims to Boost Omni-Channel Business Share and Non-Food Categories

Spencer's Retail Plans to Grow Omni-Channel Business and Increase Non-Food Category

Spencer's Retail, the RP-Sanjiv Goenka Group's multi-format retailer, is planning to grow its omni-channel business and increase its non-food category this fiscal.

The company's chairman, Shashwat Goenka, said that Spencer's Retail plans to strengthen its business in the core geographies of West Bengal and Uttar Pradesh, open new stores, and add 10% of its trading area.

The company also plans to increase the share of its omni-channel business from the current 12% to 20% by the end of the fiscal.

In addition to growing its omni-channel business, Spencer's Retail is also planning to increase its non-food category from the current 30% to 40% of its business mix. This will be done by expanding its offering of apparel and general merchandise products.

The company is also working on all of its cost line items, including operating costs and SG&A expenses, in order to accelerate its path to profitability.

Strategic Approach and Expansion:

With a vision to fortify its position in key markets such as West Bengal and Uttar Pradesh, Spencer's Retail plans to open new stores and extend its trading area by 10%. Simultaneously, the retailer is focused on bolstering its Omni-channel business segment and elevating the mix of higher-margin non-food categories, such as Apparel & General Merchandise.

Shashwat Goenka, Chairman of Spencer's Retail, stated, "Our growth strategy involves strengthening our presence in core geographies, expanding our store network, and enhancing our product offerings."

Leadership Transition and Path to Profitability:

Shashwat Goenka was appointed as Chairman of Spencer's Retail following Sanjiv Goenka's decision to step down. Emphasizing the company's commitment to reaching profitability, Shashwat Goenka affirmed that they are diligently addressing various cost factors, including operating costs and SG&A expenses.

Financial Performance and Expansion into 'Value' Segment:

Despite a net loss increase to Rs 210.39 crore in FY23, Spencer's Retail witnessed a 6.65% YoY growth in revenue, reaching Rs 2452.58 crore for the fiscal year. The retailer diversified its presence by entering the 'value' segment, introducing a new hypermarket chain known as "Value Market" earlier this year.

While the initial response to these stores has been positive, the decision to expand further will be evaluated based on performance over the coming quarters.

Enhancing Omni-Channel Proposition:

Spencer's Retail has established a strong Omni-channel presence, catering to consumers in over 40 cities. The retailer's Omni-channel offering includes a rapid "Ordered on phone & delivered within 2 hours" service, as well as an e-commerce proposition via the app and website.

These Omni-channel efforts contribute to over 12% of Spencer's Retail's business mix, reflecting its commitment to offering customers a seamless shopping experience.

Some relevant and latest facts for the above news:

• Spencer's Retail is a multi-format retailer with over 400 stores in India.

• The company's omni-channel business currently contributes over 12% of its revenue.

• Spencer's Retail plans to increase its non-food category from the current 30% to 40% of its business mix.

• The company will strengthen its business in the core geographies of West Bengal and Uttar Pradesh.

• Spencer's Retail will open new stores and add 10% of its trading area.

• The company is also working on all of its cost line items, including operating costs and SG&A expenses, in order to accelerate its path to profitability.

In addition to the above, here are some other recent developments at Spencer's Retail:

• The company appointed Shashwat Goenka as its new chairman in May 2023.

• Spencer's Retail launched a new hypermarket chain called "Value Market" in January 2023.

• The company's net loss widened to Rs 210.39 crore for FY23 from Rs 121.46 crore for FY22.

• Its revenue from operations, however, grew 6.65% year-on-year at Rs 2452.58 crore for the last financial year.

Conclusion:

As Spencer's Retail advances its business strategy, the focus on expanding its non-food categories, strengthening Omni-channel operations, and optimizing operational costs underscores its determination to thrive in a competitive market.

The retailer's innovative approach to diversification and customer-centric services positions it to navigate evolving consumer preferences and drive sustainable growth.