RPG group-promoted Spe- ncer’s Retail has decided to launch standalone stores for foreign apparel brands and focus on lifestyle to drive bottom lines.
While some brands that are now available in Spencer’s outlets will see a major push through the standalone stores, the company is also planning to enter into franchise agreements with other brands.
Spencer’s will soon launch independent stores for the US-based apparel brand ‘Beverley Hills Polo Club’ (BHPC), for which the retailer is already an exclusive licensed franchisee. The company plans to launch five standalone stores of the brand in Delhi in the next two months.
According to a senior Spencer’s official, who did not wish to be named, the retail company is planning to launch similar stores for the UK-based apparel brand for children ‘Lady Bird’ from the House of Woolworths. “We are in the process of tying up with a couple of other brands in the next one month,” he said.
According to him, lifestyle retail contributes to almost 35 per cent of the company’s revenue. “Food and grocery is a category that only contributes to the top-line because the margins are very slim. So, we want to focus on lifestyle segment to drive a healthy revenue,” the official said. Based on the response of the standalone BHPC stores, the company will roll out similar stores in other metros. Besides, the company will dedicate more area in the large format Spencer’s stores for lifestyle retailing.
Source: Financial Chronicle
