Spencer’s Retail, the RP-Sanjiv Goenka Group’s multi-format retailer, is planning to increase higher margin non-food category in its business mix and grow the share of Omni channel business this fiscal.
“We plan to build the business through strengthening our business in the core geographies of West Bengal and Uttar Pradesh, opening new stores and adding 10% of our trading area, increasing the share of Omni channel business and also increasing the non food (Apparel & General Merchandise) higher margin category business mix,” Spencer’s Retail chairman Shashwat Goenka told FE.
The company’s board appointed Shashwat, sector head- Retail & FMCG, of the Group, as its chairman with effect from May 23. Sanjiv Goenka stepped down from the position of chairman and director of the company with effect from close of business hours on May 22.
Shashwat Goenka chaired the sixth annual general meeting (AGM) of Spencer’s Retail on Friday.
Later, he told FE that the company is also working on all the cost line items including operating costs and SG&A (selling, general, and administrative) expenses towards an accelerated path to profitability.
The company’s net loss widened to Rs 210.39 crore for FY23 from Rs 121.46 crore for FY22. Its revenue from operations, however, grew 6.65% year-on-year at Rs 2452.58 crore for the last financial year.
The retailer, which had been present in premium and regular aspirational retail segments, entered the growing ‘value’ segment with the unveiling of a new hypermarket chain called “Value Market” in January this year.
“Value-market stores were launched in Jan’23 with pilot of 10 stores across the country. The initial response has been encouraging from the consumers. However, it has only been few months and any decision on expansion shall be evaluated basis performance over next couple of quarters,” Shashwat Goenka added.
The company is currently present in over 40 cities with its Omni-channel proposition. This includes an “Ordered on phone & delivered within 2 hours” consumer proposition and an “App/website based ecommerce proposition”. Together these contribute over 12% of its business mix.