Spencer’s Retail is also exiting Andhra Pradesh and Telangana markets along with Delhi-NCR
New Delhi: Spencer’s Retail has started the process of shutting its chain of stores in Delhi-NCR as part of its plans to completely exit the loss-making operations in the capital region market, two people familiar with the development said.
“It has not been feasible for some time for Spencer’s to run stores in the NCR,” said a person familiar with the development. “The process of shutting the stores has started.”
The BSE-listed Spencer’s Retail operates a total of 18 stores, supermarkets – in the range of 25,000 sq. ft. – and neighbourhood stores format – in the range of 3,000 sq. ft. – in Delhi, Gurugram, and Noida that will be shut, the sources said.
Over the weeks, various Spencer’s Retail stores in NCR have been offering heavy clearing discounts of up to 70% on everything from food to furniture and from electronics to home items.
The company’s hypermarkets stock anywhere between 15,000-20,000 stock-keeping units (SKUs) while the small kirana format sells anywhere from 3,500-6,000 SKUs, depending on their sizes.
Similarly, Spencer’s Retail is also exiting Andhra Pradesh and Telangana markets along with Delhi-NCR. In Telangana, Spencer’s is present mainly in Hyderabad and has operations in the coastal regions of Andhra Pradesh.
Delhi NCR, Andhra Pradesh, and Telangana are the latest markets for the Kolkata-based retailer to completely exit after their departure last year from Southern markets of Tamil Nadu and Kerala.
“When we did a review of the business, we felt that given our size and what we do well, we are best placed to double down in a few geographies,” Anuj Singh, managing director of Spencer’s Retail had told IndiaRetailing in an interview last year. “We identified the geographies as West Bengal, Eastern UP, which cover the cities of Banaras, and Lucknow and go up to Allahabad, Gorakhpur, and NCR.”
Now, the company will focus on Eastern Uttar Pradesh in the north and its home market of West Bengal, the second person said, asking not to be named.
Spencer’s Retail is part of Kolkata-based RP-Sanjiv Goenka Group, a conglomerate that has interests in power, chemicals, media and entertainment, and sports among sectors. The group is the owner of the Indian Premier League (IPL) franchise of Lucknow city.
