RP-Sanjiv Goenka Group flagship CESC is embarking on measures to boost financial performance of Spencer’s Retail. Spencer’s is revamping its senior management team and is launching a whole new apparel section as listing of this multi-format retailer is on the cards.
“Spencer’s clocked company level Ebitda positive for six month in a row…We are very optimistic about the performance of the company as we go forward,” CESC chairman Sanjiv Goenka said on Friday.
For Spencer’s Retail (SRL), a wholly-owned subsidiary of power utility CESC, average revenue per square foot per month rose to R1,740 in the third quarter this fiscal from R1,452 during last fiscal.
“R1,740 per square foot revenue is way highest in the industry. We hope that it will be a continuing sign. So we are very much getting set for a company net profit,” Goenka said. The group expects that Spencer’s will turn PAT positive by next fiscal.
The firm’s gross revenue stood at R1,865 crore at the end of last financial year, while Ebitda was at negative R53 crore. In order to improve performance, Goenka said, the retailer has made changes in the management team and hired senior level managers from other companies. “There were lots of approach changes, a lot of costs cutting efforts were made. We have changed our recruitment process. Now, we are going for nothing but the best. And we are demanding very high performance, and we are getting it,” he said.
The firm, which offers groceries, home & personal care products, apparel & accessories, consumer durables and lifestyle products, has opened six stores in December quarter.
Apart from food segment, SRL is now also focusing more on apparel as it is going to launch a vast range of products under Spencer’s brand next week.