P Sanjiv Goenka group company Spencer’s Retail's growth driver will be large format stores as it expects massive headroom for growth in retail when Indian modern retail to double its size over the next couple of years, company officials said on Sunday.
The company also expects that Indian online grocery market will touch Rs 1.36 lakh crore by 2024. Grocery segment in modern retail is currently less than five per cent.
“We will continue to expand in the existing city cluster for the next 3-4 years. Lead store growth will be Spencer’s large format stores between 5000 sq ft and 18,000 sq ft and Natures Basket small format gourmet store. Some 2.5 to 3 lakh sq ft are in pipeline for the next two years,” an official said.
The company will also reorient Spencer’s large format for higher non-food mix.
Online grocery space had seen hectic competition with strong resurgence of hyper local delivery in 30-40 minutes including free delivery of even small value orders of Rs 500 by certain players.
Spencer’s now has 190 stores across 14 cities and the trading area had expanded by 5.4 per cent in the April-September 2022 period over the corresponding period last year.
However, officials said Spencer’s aiming to be an omni channel retailer and it is growing strongly in the online space. Omni channel business for the second quarter had registered 1.7 times growth over last year and reached a sales mix of over 10 per cent.
(With inputs from PTI)
