Spencer's Retail, a food, and grocery focused retailer is experimenting with a new hypermarket format branded as 'Spencer's Value Market' to target value-conscious shoppers in tier two towns and beyond, completing its presence across the entire spectrum of shoppers, according to Shashwat Goenka, RP-Sanjiv Goenka Group sector head- retail and FMCG.
The company is currently converting ten existing Spencer's stores to this new format beginning next fiscal year. It will launch new stores organically, with Spencer's Value Market accounting for nearly half of the new stores under the company's expansion plan.
Goenka anticipates that this format will contribute half of the company's revenues over the next five years, with these stores becoming profitable within 12-18 months.
For the new format, company will have competitive pricing, offering at least a 6% discount on all products — daily household, food, grocery, personal care, fresh, apparel, and general merchandise. Spencer's Value Market stores will be 8,000-12,000 square feet in size, while Spencer's stores will be 14,000-16,000 square feet.
Spencer's Retail has 152 eponymous stores and 35 Nature's Basket locations in 35 cities. The company plans to open 14-18 new stores in the coming fiscal year. Organized grocery sales, including e-commerce, account for 8.5% of India's total market.
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