Spencer’s Retail on Monday said it will foray into value retail format with the launch of hyper market chain Spencer’s Value Market to expand its retail footprint in smaller towns in India.
Shashwat Goenka, sector head, retail and FMCG, RP-Sanjiv Goenka Group, said a new consumer segment emerging from smaller towns is seeking a modern shopping experience while seeking value. Spencer’s Value will be offering discounts on a variety of assortments.
“A lot has changed in the last four to five years, and even more has changed since the pandemic, which has brought forth a class of price-conscious consumers. As we want to go beyond 35 cities, we should adopt a model that caters to this segment of consumers, Goenka said at a virtual roundtable on Monday.
To be sure, Spencer’s Retail operates two formats, its flagship general merchandise and food brand Spencer’s as well as Nature’s Basket. The company reported the business of 2,376 crore in FY22. Spencer’s has 152 stores in 11 cities. Nature’s Basket is a premium retail chain with more than 36 stores across India.
The change in price segment is part of the company’s plan to expand its presence beyond the 35 cities where it is currently present. and apparel.
The value segment will help the company capture a larger share of the organized retail market, which is still less than 10% of the Indian retail market.
“We expect this to be a very profitable and high growth segment for us,” Goenka said.
The tea company has converted five existing Spencer’s stores into value format at Warangal, Kurnool, Guntur, Bhimavaram, Vizianagaram and Karimnagar. “Value conscious consumers are the key in these cities. We will convert 10 existing stores into value format.”
In FY24, 50% of new Spencer’s stores will be in the value format. The firm will open 14-18 stores under the Spencer’s banner, including regular and value format stores.
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