July 11, 2014: Close on the heels of Spencer’s the retail arm of RP-Sanjiv Goenka Group announcing that it would be adding 80 new hypermarkets across the country in next four years to take its count of stores to more than 200, the company has stated that it would be keen on exploring new formats like cash and carry wholesale, e-commerce and neighbourhood stores. As Spencer’s expects to breakeven within next four quarters, the company has been on a spree of adding more stores in the last fiscal and would be adding more in the coming years.
Shashwat Goenka, the group’s sector head (retail) who is one of the youngest business head was quoted as saying, “The next big plan will be finalised as we achieve breakeven, which is almost there. We will, however, carefully select the next business area, where gestation period is lower, to ensure we do not bleed forever.” Interestingly retail chains like Reliance Retail too have off late decided to focus on cash-and-carry wholesale for better margin and scale.
The country’s largest retailer, Reliance Retail too has decided to focus on cash-and-carry wholesale for better margin and scale. It has been shutting unviable food format stores and hypermarkets to expand the wholesale venture. The per square foot revenue of Spencer’s has seen an increase over Rs.1,300 in the first quarter of 2014-15 is close to break even. The retail chain whose 80 per cent of the revenues are generated from food business is trying to increase the revenue from non food business. The company is looking forward to post a net profit for the first time in 2015.