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Spencer’s Retail is looking to increase the share of imported food items in its total food basket.
The retail chain also plans to bet big on categories such as bakery, dairy, fruits and vegetables and imported food items to strengthen its food business.
According to Chief Executive Mohit Kampani, imported items, which currently account for nearly 4.5 per cent of its turnover, would be increased to 8 per cent in next three years. (Spencer’s does not share turnover details.)
“In 2013-14 we intend to take the sale of imported items to around 5.5 per cent of our turnover and to 8 per cent in another three years,” Kampani told Business Line .
Of the 12,000 SKUs (items for sale), around 3,500 are imported items. “Imported recipes are picking up across metros. We want our customers to get products which you do not get locally,” he said.
Under the ‘Unique to Spencer’s’ concept, the company plans to introduce products in categories including bakery, fruits and vegetables, liquor, frozen items, imported food and dairy products either under private label or by using its sourcing strength.
Over 60 per cent of its sales come from food items. Nearly one-third of the total assortment at the retail chain would include the Unique to Spencer’s categories in 2-3 years, he said.
“We are looking at providing experiential food to our customers. We want Spencer’s to be considered as the most preferred retailer in these identified categories,” Kampani said.
The RP-Sanjiv Goenka owned chain will leverage its back-end operations to ensure that items unique to the retail chain are made available, he said.
The group entered into a tie-up, six months ago, with vineyards in Chile to produce and supply wine across stores that have licences. To be introduced in India soon, the wine brand will be exclusive to the retail chain and priced lower than similar blends in the market.
The company has also started procuring fruits and vegetables locally for the Kolkata market. Some exotic vegetables (like broccoli) have been introduced in West Bengal through local farmers. Seeds and farming techniques were imparted by Spencer’s to these 53-odd farmers.
In the long run, Spencer’s plans to explore the option of introducing cut vegetables and fruits, Kampani said.
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