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Thursday, 11 August 2011 |
Spencer’s Retail plans to sell up its 20 per cent stake to private equity firms in an effort
to raise money and push growth has been put on hold. Spencer’s is now open to an alliance with foreign multi-brand retailers when they are allowed entry. Spencer’s is the retail arm of the RP-Sanjiv Goenka Group. With 200 stores across 45 cities the retail arm has planned ambitious expansion strategy and restructured its business during the economic crisis following its exit from small neighbourhood stores. Now it is focused on large format hypermarkets and plans to add 2.5 million sq. ft. of selling space over the next three years. The retail company has also repositioned its product profile to meet the requirements of the upper middle class.
Besides, Goenka had taken over the company four years ago from flagship company CESC, the power generator and monopoly distributor in greater Kolkata, which had till now funded Spencer’s losses. Meanwhile, CESC Properties, a subsidiary of the CESC, plans a luxury mall, Spencer’s Galleria, housing 20 luxury brands -- a first for Kolkata. The mall is expected to be ready by the second half of 2012 and would cover a retail area of 400,000 sq. ft. Spencer's, established in 1996, focuses on verticals like fresh fruit and vegetables, food and grocery, personal care, garments and fashion accessories, home and office essentials, electrical and electronics. Last year Spencer`s reported a loss of Rs 286 crores, down from Rs 351 crores a year ago, with the turnover going up to Rs 1,056 crores in 2010-11 as against Rs 965 crores in 2009- 2010. |
