Advertising + Staff Costs of Indian Retailers

In continuing our coverage on comparing how Pantaloon, Vishal, Shoppers Stop, Spencers and Trent stack up against each other, we are presenting to you in this article about the Staff Costs and Advertising and Marketing expenditure by each of these retailers.

Spencers staff cost as Rs/ sf (Rs919) is the highest and its absolute staff cost is 2nd highest, after Pantaloon. By size, Spencer’s is smaller than Vishal and Shoppers Stop. Over the last two years, retailers have offered 15-20% salary increments.

Staff Costs for Retailers [Rs / sft of retail area under operation]

  • Pantaloon Rs 390
  • Vishal Megamart Rs 481
  • Shoppers Stop Rs 565
  • Trent 588
  • Spencers Rs 919

During FY08, retailers (other than Spencers) spent 3-6% of sales on advertising and marketing expenses. Retailers could potentially look to rationalize this cost as they face a consumer slowdown.

Absolute Advertising and Marketing budget [INR million]

  • Pantaloon 1,466
  • Shoppers Stop 441
  • Trent 445
  • Vishal 279
  • Spencers 27