Spencer’s, an RPG Group company and one of the pioneers of organised retail in India, recently shifted its corporate headquarters from Chennai to Kolkata as part of a consolidation exercise. The company is in the process of launching a massive expansion drive. Spencer’s has retail outlets across the country in four formats – Daily, Super, Hyper and Fresh.
According to a company spokesperson, Spencer’s was developing a million and half sq ft of property of which half a million sq ft was already operating. By March 2007, a million sq ft is expected to be operational. The company is targeting at an exponential growth and the aim is to develop 4-5 million sq ft of property by 2010.
Talking about the competition, the spokesperson said, “There is enough space in organised retail for many more players to come in. Rather than a few players driving organised retail in the country, we need more large domestic players. It would help drive growth, than if you were a lonely player ploughing a lonely furrow.”
The company is looking at promoting a private label and will launch ‘Spencer’s Value’, which will be rolled out nationally on August 1, 2006 across all stores. For the private label, Spencer’s is looking at product categories which are neither very technology intensive nor too dominated by brands. Under this label, commodity items like candles, floor cleaners, toothbrushes, etc, will also be included. Currently, private labels contribute only 1 per cent of the business and the company is hoping that a year from now ‘Spencers Value’ will contribute close to 10 per cent of the business.
While the account is currently being handled by Grey Worldwide, it is believed that Spencer’s is in the process of evaluating options for their requirements for both creative and media. For Kolkata agencies this will certainly be a big account.
“As far as advertising is concerned we are constantly reviewing work and seeing the best resources that we can bring to this business. What was good enough in the past may not be good for the future. So, whether it requires more creative thinking, or bringing additional resources or a stronger media buying, those are all the things we are examining,” added the spokesperson.