Spencer’s Retail Pioneering Indian Retail for over a century
CATEGORIES : RETAIL MANAGEMENT
Supermarkets and Hypermarkets are ubiquitous in India’s urban landscape, today. Originally concentrated in central business districts of Tier-1 and Tier-2 cities, these retail formats can be found in every neighborhood and city of India now.
Like with most Indian industries, the origins of Retail can be traced to the British Raj. In 1863, two British acquaintances John William Spencer and Charles Durrant, who worked as auctioneers and commission salesmen, started the first store at Mount Road in Chennai. Originally called Durrant & Spencer, the exit of Charles Durrant in 1867 caused a name change to JW Spencer and Co.
Laying the foundation for Retail-centric thinking
The period between 1867 and 1920 was of slow growth during which John Spencer spent most of his energies building a large supply network of traders and merchants across undivided India.
In 1920, Spencer’s became the first grocery chain in India to stock a large range of products under one roof; priced at rates comparable to neighborhood kirana-shops. Much before the Costcos, Walmarts and Targets of the world took roots in the US, and spread across its vast boundaries, Spencer’s was already a large chain of stores extending from Karachi in the West to Chittagong in the East, from Delhi in the North to Tuticorin in the South.
The need for partnerships in Independent India
Post-independence, growth was slow again. The British owners of the company, who had by then relocated to UK, apparently found it difficult to steer through the complex labyrinths of policy in India’s license Raj. Added to that, Retail was not considered an important industry and given a policy boost. Even as ambiguity continued, Spencer’s started the first supermarket chain in India, in 1980. By now, Spencer’s had become a ripe target for acquisition.
In 1989, the R.P. Goenka group, a prominent business conglomerate in India acquired a majority stake in Spencer’s which opened up a new chapter of growth. In 1995, a technical assistance agreement was signed with Hong Kong-based Dairy Farm International Holdings Ltd. Accordingly, a new chain of supermarkets under the brand name ‘FoodWorld’ were initiated across the country, starting with Chennai in 1996. A new brand of Hypermarkets called ‘Giant’ was started in 2001. However, due to business differences, the JV was terminated in 2006. Out of the 93 stores owned under the JV, RPG retained 48 of them rebranding them as a new and refurbished Spencer’s, while the HK-based partner retained the rest continuing to operate them under the FoodWorld brand and even expanding over the years.
Resurgence and rapid growth
Termination of the JV in 2006 infused new thinking in the RPG-owned Spencer’s which innovated relentlessly to regain its once predominant position. The new Spencer’s is known for its Customer Focus and fruitfully combining lifestyle aspirations with convenience, to provide a unique shopping experience to consumers. Spencer’s hypermarkets are designed to meet the daily, weekly and specialty shopping needs of consumers. One can find various specialty sections in these hypermarkets which have made them popular. Today, Spencer’s operates more than 200 stores across 35 cities of India, under two formats: Convenience Stores and Hypermarkets.
Spencer’s success can be attributed to several factors. Its emphasis on quality and product spread, its innovation strategy, promotional tactics and intelligent brand marketing have created an example that larger, more cash-rich, and new-age Retailers are keen to emulate.
From India, Bengaluru
CATEGORIES : RETAIL MANAGEMENT
Supermarkets and Hypermarkets are ubiquitous in India’s urban landscape, today. Originally concentrated in central business districts of Tier-1 and Tier-2 cities, these retail formats can be found in every neighborhood and city of India now.
Like with most Indian industries, the origins of Retail can be traced to the British Raj. In 1863, two British acquaintances John William Spencer and Charles Durrant, who worked as auctioneers and commission salesmen, started the first store at Mount Road in Chennai. Originally called Durrant & Spencer, the exit of Charles Durrant in 1867 caused a name change to JW Spencer and Co.
Laying the foundation for Retail-centric thinking
The period between 1867 and 1920 was of slow growth during which John Spencer spent most of his energies building a large supply network of traders and merchants across undivided India.
In 1920, Spencer’s became the first grocery chain in India to stock a large range of products under one roof; priced at rates comparable to neighborhood kirana-shops. Much before the Costcos, Walmarts and Targets of the world took roots in the US, and spread across its vast boundaries, Spencer’s was already a large chain of stores extending from Karachi in the West to Chittagong in the East, from Delhi in the North to Tuticorin in the South.
The need for partnerships in Independent India
Post-independence, growth was slow again. The British owners of the company, who had by then relocated to UK, apparently found it difficult to steer through the complex labyrinths of policy in India’s license Raj. Added to that, Retail was not considered an important industry and given a policy boost. Even as ambiguity continued, Spencer’s started the first supermarket chain in India, in 1980. By now, Spencer’s had become a ripe target for acquisition.
In 1989, the R.P. Goenka group, a prominent business conglomerate in India acquired a majority stake in Spencer’s which opened up a new chapter of growth. In 1995, a technical assistance agreement was signed with Hong Kong-based Dairy Farm International Holdings Ltd. Accordingly, a new chain of supermarkets under the brand name ‘FoodWorld’ were initiated across the country, starting with Chennai in 1996. A new brand of Hypermarkets called ‘Giant’ was started in 2001. However, due to business differences, the JV was terminated in 2006. Out of the 93 stores owned under the JV, RPG retained 48 of them rebranding them as a new and refurbished Spencer’s, while the HK-based partner retained the rest continuing to operate them under the FoodWorld brand and even expanding over the years.
Resurgence and rapid growth
Termination of the JV in 2006 infused new thinking in the RPG-owned Spencer’s which innovated relentlessly to regain its once predominant position. The new Spencer’s is known for its Customer Focus and fruitfully combining lifestyle aspirations with convenience, to provide a unique shopping experience to consumers. Spencer’s hypermarkets are designed to meet the daily, weekly and specialty shopping needs of consumers. One can find various specialty sections in these hypermarkets which have made them popular. Today, Spencer’s operates more than 200 stores across 35 cities of India, under two formats: Convenience Stores and Hypermarkets.
Spencer’s success can be attributed to several factors. Its emphasis on quality and product spread, its innovation strategy, promotional tactics and intelligent brand marketing have created an example that larger, more cash-rich, and new-age Retailers are keen to emulate.
From India, Bengaluru
Ms.Rachana Patil | Marketing Manager
ICFAI Group | Banashankari Branch
Cell no: +91 7353751753 | Ph: 080 26794550
Address:
ICFAI GROUP
Room No. 20, 1st Floor, Rohini Complex,
Kathriguppe Main Road, 4th Block, BSK 3rd Stage,
Bengaluru, Karnataka - 560085
Landmark: Opp Big Bazzar |Abv Coffee Day
From India, Bengaluru
ICFAI Group | Banashankari Branch
Cell no: +91 7353751753 | Ph: 080 26794550
Address:
ICFAI GROUP
Room No. 20, 1st Floor, Rohini Complex,
Kathriguppe Main Road, 4th Block, BSK 3rd Stage,
Bengaluru, Karnataka - 560085
Landmark: Opp Big Bazzar |Abv Coffee Day
From India, Bengaluru
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