Comments
Spencer’s Retail Ltd plans to focus on apparels, electronics and general merchandise to shore up its margins. The company will increase the display area for apparels and other products to nearly half of the store size. At present, non-food segment including apparels, electronics and general merchandise, occupy nearly one-third of the store area.
Mohit Kampani, President and Chief Executive Officer, Spencer’s, said the non-food segment, which accounts for nearly 25 per cent of its sales, is set to grow by more than 20 per cent in the next two years.
“We are going to almost double the space for non-food. We also plan to double the share of private label in its apparels segment to 65 per cent over the next two years,” Kampani added. Currently, private labels account for 31 per cent of its apparels division.
Experiential food
The The RP-Sanjiv Goenka Group owned retail chain will soon introduce experiential food. So far majority of the food items were packaged, he said. But, Spencer’s will now provide the customers an opportunity to ‘interact’ with the food. “It means before buying the product, you can touch, sample, taste and experience the product. Many food items will be open and fresh. One can even taste spices and dry fruits,” he said.
The focus will be on fresh food items. Organic and farm-fresh foods will also get priority. This will, however, be restricted to the metros. “We believe there is no market for experiential food outside metros,” he said. Experiential food will soon account for nearly 40 per cent of its food items, he added.
Kampani said Spencer’s plans for a break-even are “well on track” and expects the chain to achieve it in the October-December quarter.
“Our primary focus is on breaking even on an EBIDTA basis,” he added. This means Spencer’s earnings would match the costs, other than interests and depreciation.
The retail chain witnessed 20-21 per cent overall sales growth in the June quarter.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.