15 July 2023, Mumbai
Spencer's Retail, under the leadership of Chairman Dr. Sanjiv Goenka, is focused on enhancing its operational efficiency by leveraging its omnichannel strategy and introducing a new value market concept, according to the company's recently released annual report for FY23.
Omnichannel approach
Emphasizing the importance of transformation and growth, Dr. Goenka stated that Spencer's continues to embrace the omnichannel transition and venture into the value market proposition.
The brand's out-of-store strategy includes diverse channels such as WhatsApp, phone delivery, social media, e-commerce, mobile applications, and collaborations with Resident Welfare Associations (RWAs).
New value market proposition
In the report, Dr. Goenka highlighted the retailer's priority of expanding high-margin categories, enhancing non-food sales assortment, and introducing Sales or Return (SOR) brands in general merchandise and apparel.
Regarding the grocery segment, Dr. Goenka outlined Spencer's Retail's three-pronged approach, targeting premium/gourmet consumers through Natures Basket, catering to aspirational consumption with Spencer's, and serving the value-conscious segment, which the company piloted earlier this year.
Highlights strategic initiatives
Looking ahead, the company plans to open 10-15 new stores, including both Spencer's and Natures Basket outlets, in addition to their existing network of 186 stores across 44 cities. Notably, 79 of these stores are large format, contributing 77 percent of the revenue, while 107 are small format, and 10 are value market outlets.
In terms of financial performance, Spencer's Retail recorded a total revenue of Rs 2,485 crore and an EBITDA of Rs 36 crore in FY23.
Uptick
The company's e-commerce subsidiary, Omnipresent Retail India Private Limited (ORIPL), achieved its first positive EBITDA with a Gross Merchandise Value (GMV) of Rs 302 crore in 2022-23.
The report also highlighted a remarkable 7.6 times growth in ORIPL compared to pre-COVID levels, driven by the shift in consumer preferences towards online shopping mediums.
