Spencer’s Retail promoted by the House of Goenkas, one of the oldest Business Houses in India and led by the younger generations of Goenka family spotted opportunities in retail way back in 1990s. The younger generation wanted growth and new businesses to venture and they didn’t do any mistake by stepping into retail. After achieving success in their initial blueprint, they have now unveiled multiple Joint Venture plans for further growth and expansion.
Spencer’s Retail will enter into a JV with American Bakery Cafe to setup stand alone stores under the latter’s brand. This is the second move after forming a distribution arrangement with the UK based chain Woolworth.
Mr. Sanjiv Goenka, promoter of Spencer’s Retail said,
We are going to form a JV with US based bakery cafe chain for standalone stores and the announcement shall be made within the next 10 days.
Mr. Samar Singh, VP Marketing of Spencer’s Retail said,
In the next 18 months we expect our JVs and distribution arrangements to contribute 20% of our total business. bakery Cafes will also be introduced as shop-in-shop outlets in our large format stores. [Read about Spencer’s Retail Formats]
Spencer’s mainly derives majority of its income from Food & Grocery retailing. Apparel & Fashion accessories contribute just 10% and the company is actively seeking a foreign partner for the JV and hopes to take the turnover from this segment to 25% in 18-24 months. Currently, Spencer’s operates fashion wear private labels under the brands Mark Nicholas and Island Monks.
Unlike Tata’s, who opted for franchisee route even for large stores like Westside, Spencer’s is opposed to the idea despite of rising establishing and operating costs.