Spencer’s Retail focuses on store profitability

Spencer’s Retail is working on store profitability. Three loss-making stores have shut. The Kolkata-based company currently has a presence in over 35 cities across India. It sells a wide range of products including apparel, footwear, cosmetics, home essentials and more.

Spencer’s Retail is working on cultural integration, ensuring continuity of customer experience and business, business synergies and cross synergies identification. The company saw its consolidated net loss widened to Rs 39 crores in the third quarter as compared to a net loss of Rs 11 lakh it had reported in the same period last fiscal. Revenue for the quarter increased to Rs 700 crores as against Rs 573 crores it had reported in the corresponding period of the last fiscal. Spencer’s expenses also shot up to Rs 746 crores as compared to Rs 580 crores it reported last year.

Spencer’s Retail has moved a part of its portfolio to value-added, differentiated products. Private labels now consist of about 13 per cent of the portfolio. Apparel margins have gone up by six per cent and apparel sales are going up. In general merchandise, the company’s margins have gone up by three per cent and the ratio of general merchandise sales to total sales is also going up.