Spencer’s Retail which launched Bevery Hills Polo Club (BHPC) in Mumbai, is on the
expansion spree to open 18 more such stores, this fiscal, making a total of 29 such stores.
The RPG group owned Spencer’s Retail, commonly known for its food and grocery
brand is changing its to generate revenue. The retail chain wants apparel to account for a
third of its revenue; which is just 10 per cent, currently.
Purnendu Kumar, associate vice president at Technopak Advisors, says this is inevitable
given the kind of margins apparels can make. “While food and groceries fetch around 10-
20 per cent margins, the same is 40 per cent for apparels and accessories,” he adds.
This is the reason why Spencer’s is pushing up the share of private labels to 30 per cent,
which is 17 per cent presently, in the next 18 months. Spencer’s also has plans to open
four exclusive stores of Ecko and two of Ladybird, in the National Capital Region.
Spencer’s is planning to add one million square feet of retail area by FY 2013 from 0.9
million sq ft, presently.
As adopted by other big retailers, Spencer’s is also betting big on hyper markets and have
plans to open six to seven “Hypers” this year.