Spencer’s Too Going ECommerce Way
Sanjiv Goenka led Spencer’s Retail is now looking at entering the ECommerce arena soon, joining the likes like Flipkart, Amazon, Snapdeal. The electronic bazaar will be up and going by April this year confirmed Their Group Head for retailing, Shashwat Goenka. Spencer’s Retail is another wing of RPG conglomerate, headquartered in Mumbai
While the e-platform is still in progress, the management is deciding the implementation of the same. From deciding the product categories to time framing delivery and the cost associated, the group seems to be doing it’s SWOT analysis.
“In apparel segment we are looking for a new sourcing point in Kerala. We have developed seven apparel brands including men’s wear, women’s wear, kids wear and sports-wear. In West Bengal, we are focusing on local food items including varieties of fish and rice.” said Mr Goenka.
Spencer’s retail however seems to be positive about this move of theirs as they have more than 30,000 employees in the retail department with 125 stores in 36 cities. In southern India, the retail chain operates as Convenience stores (Spencer’s) and Hypermarkets (Hyper). RPG group also re-acquired the food retail chain, Foodworld which has already has 73 stores in South India.
With such presence across India, the e-commerce step was quite predictable. However, it’s competitor Kishore Biyani led Future group had earlier said, “It’s all about money. The e-commerce guys have money to experiment – I don’t have this kind of money to blow” but later he gave in eventually by collaborating with Amazon Inc.
The same trend was seen when Tata’s Croma signed a deal with Snapdeal to sell it’s electronic products online. In the total retail segment, hypermarkets comprise of 21% of the retail space as per 2013-14 IBEF stats. In that 21%, 69% comprises of food and grocery followed by apparel ie comes in at 8%.
In July, 2014, Spencer’s has announced to open 11 large format stores and with the funding on hand, looks like the e-commerce deal is coming in handy. Though RPG will not merge with any other e-tailer, the up-coming e-platform will have from food & groceries, apparel, furniture and furnishing, consumer IT durables, footwear, jewelry etc.
In the retail analysis report, “Pulse of Indian Retail Market, March 2014” which pointed out to the growth rate of 13% of CAGR to reach around $950 billion by 2018. Sure the competition is fierce out there for brick and mortar shops as well as e-tailers, with perfect competition; the price of standardized products remains more or less same with each and every e-tailer. The only thing that seems to make Spencer’s more desirable could be it’s impressive logistics and foraying into Food and groceries delivery.
We hope the best for the retail chain.