Spencer’s Retail Ltd, a CESC subsidiary, will finalise its e-commerce plan by April. Shashwat Goenka, Sector Head of Spencer’s Retail, told reporters that the brick and mortar stores and the e-commerce prices, however, would be the same.

“We would freeze the e-commerce business model within next couple of months. Then over a timeframe, we would implement it. We are likely to begin with a few categories of products for our online store,” he added.

It has also decided to enrich and expand its private labels, mostly in food and apparels. Spencer’s has decided to stress more on local sourcing and bring in regional flavours in the product baskets.

“In apparel segment we are looking for a new sourcing point in Kerala. We have developed seven apparel brands including men’s wear, women's wear, kids wear and sports wear”. To make a differentiation and to cut logistics cost, it would depend on local sourcing more than pan-India collection. “In West Bengal, we are focussing on local food items including varieties of fish and rice,” he said.

Spencer’s has also decided expand its chain mainly through large-format (above 25,000 square feet). All these efforts were geared to make Spencer’s profitable.

As a strategy for growth, Spencer’s has decided to focus on expanding in the eastern and southern markets.

“We would also be present in the north, particularly in Uttar Pradesh and the National Capital Region”. However, western region will continue to see a token presence in Gujarat.

In 2015-16, Spencer is going to have 12 to 15 large-format – hyper – stores. Most of these would be in the east and the south. Spencer’s is opening its 7th hyper store in Kolkata on Saturday.

Currently, Spencer’s has 125 stores in 36 cities including 33 hyper stores. The total store area now stands at over one million square-feet.

For expansion, Spencer would spend about Rs 3 to 5 crore for each hyper store. “CESC, our parent, would fund the projects”, Goenka said.​

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