According to Dr. Sanjiv Goenka, the Chairman of RP-Sanjiv Goenka Group, Spencer’s Retail is placing great emphasis on enhancing its efficiency by leveraging its omnichannel strategy and introducing a fresh concept called the ‘value market.’ This information was highlighted in the company’s annual report for FY23.
“To transform and thrive in the industry, Spencer’s continues to foster business growth through the Omni-channel transition and entering into a new ‘Value Market’ proposition,” he said.
The brand has developed a comprehensive off-site strategy that incorporates various channels and platforms to reach its customers. These include WhatsApp, phone delivery services, social media platforms, e-commerce websites, a dedicated mobile application, and collaboration with Resident Welfare Associations (RWAs).
In the report, Goenka emphasized that the retailer is presently focusing on expanding high-margin categories. This involves improving assortments and increasing the presence of Sales or Return (SOR) brands in general merchandise and apparel. By prioritizing these initiatives, the retailer aims to enhance its non-food sales mix and drive profitability.
Regarding the grocery sector, he mentioned that Spencer’s Retail has set its sights on catering to three distinct consumer classes. These classes encompass the premium/gourmet segment, where the retailer showcases its brand Natures Basket, the aspirational consumption section serviced by Spencer’s, and the value-conscious segment, which the company initiated as a pilot earlier this year.
In terms of future plans, the chairman disclosed that the company intends to establish 10 to 15 new stores, encompassing both Spencer’s and Natures Basket. Presently, the retailer operates a total of 186 stores spanning 44 cities. Among these, 79 stores are categorized as large format, contributing to 77 percent of the revenue, while 107 stores are small format, and 10 stores fall under the value market outlets category.
Regarding its performance, Spencer’s Retail concluded FY23 with a consolidated revenue of INR 2,485 crore and an EBITDA of INR 36 crore. Additionally, its e-commerce subsidiary, Omnipresent Retail India Private Limited (ORIPL), achieved a significant milestone by recording its first positive EBITDA. ORIPL accomplished this feat through a Gross Merchandise Value (GMV) of INR 302 crore during the 2022-23 period. Notably, the company witnessed remarkable growth in ORIPL, reaching 7.6 times the pre-COVID levels. This growth was primarily driven by the shift in consumer preferences towards online shopping mediums.
