Spencer’s looks to break even

Spencer’s Retail is expecting to break even within the next two to three years. The company will invest

another Rs 90 crores in the next fiscal to set up 15 to 20 new stores in the country. Spencer’s, owned by the RPG group, will focus on the hypermarket format. It’s also looking to increase the share of private labels. Spencer’s Retail, plans to sell a 20 per cent stake to private equity investors to help fund expansion, President Vineet Kapila said. The company currently has 200 stores in India. Spencer’s aims to cuts its losses by focusing on opening large stores, which offer higher margins, he said.The company is also planning to re-format its loss making Spencer’s Fish and Meat Fresh stores. The retailer plans to add two lakh sq. ft. of space in the current fiscal. Spencer’s has a 12,000 sq. ft. store in Tamil Nadu which stocks food and grocery, fresh fruits and vegetables, electrical, home and office essentials, basic wear and fashion accessories, toys and personal care. The RPG group has 280 retail spaces across the country of which Spencer’s Retail (226 units) occupies around 10 lakh sq. ft.

Since 1863, Spencer’s has been a part of the Indian retail landscape. At one time, the Spencer’s Empire stretched from Peshawar to Cochin, from Karachi to Chittagong, spanning the length and width of undivided India. Originally owned by a British gentleman –John William Spencer– it acquired Indian ownership in the 1960s, and became part of the RPG Group in 1989. Apparel brands like Ladybird, Beverly Hills Polo Club, Ecko Unlimited et al are retailed through Spencer’s chain.