Rising prominence of e-commerce is creating alternatives for each retailer and the long-term outlook for the trade seems optimistic, supported by rising revenue, beneficial demographics and rising urbanisation, stated Spencer’s Retail Chairman Sanjiv Goenka.
The way forward for retail lies in ‘Omni-Channel’ approach, which means converging sales through both physical stores and online, according to the latest annual report of Spencer’s Retail.
Besides, consumer lifestyles have undergone a ‘massive change” after the pandemic, leading to the emergence of newer articles of consumption even as the importance of some other “diminished”.
‘Rising prominence of e-commerce is creating opportunities for every retailer and this trend is likely to continue. Retailers could leverage digital channels (e-commerce), enabling them to reach out to more consumers,’ said Goenka while addressing shareholders.
Talking about Spencer’s e-commerce business, Goenka said it has witnessed multifold growth in the online space.
‘There is a huge opportunity, not only through the current model which is achieving rapid growth but it can also scale up much further by adding multiple products, markets, and new geographies,” he added.
Spencer’s Retail has already been offering online shopping options through its website and mobile app.
‘During 2020-21, it also pioneered in phone and WhatsApp Chatbot ordering, along with various tie-ups, including Uber, Swiggy, Dunzo, RWAs and others to strengthen its Out-Of-Store channel. Spencer’s has witnessed 6.5x growth in their e-commerce business from 2018-19 and 4.5x growth from 2019-20,” the annual report said.
Over the long-term outlook for the retail industry, Goenka said it ‘looks positive, supported by rising income, favourable demographics and increasing urbanisation.’ The pandemic has made it imperative for retailers to go beyond normal channels and adopt an ‘omni-channel’ strategy – converging gross sales by way of each digital and brick-and-mortar retailers.
‘The way forward for retail is ‘omni-channel’, converging gross sales by way of each bodily shops and on-line. Retailers with distinctive and differentiated positioning will proceed to do properly,” the annual report stated.
According to the corporate, organised retailers are prone to profit from customers tilting in the direction of organised area.
‘The firm is constantly enhancing its omni-channel strategy and strengthening its ‘Out-Of-Store’ supply channels to proceed to co-serve with brick-and-mortar channels,” it stated.
It has undertaken a hyperlocal strategy, reaching out to the shoppers straight. At the identical time, it’s also engaged in contactless supply by way of ‘Out-Of-Store’ mediums, whereas taking good thing about the e-commerce development wave.
‘The firm has additionally attained a greater buyer attain with the introduction of recent manufacturers, merchandise, marketplaces and serving in newer geographies,” it stated.
Citing information from a World Economic Forum report, Spencer’s Retail stated the patron spending in India is predicted to develop to USD 6 trillion by 2030. The rising consumption is pushed by rising households revenue, it added According to RP-Sanjiv Goenka (RPSG) Group retail arm, this altering consumption creates alternatives for organised retailers resembling Spencer’s.
‘To seize the chance, the corporate is making an attempt to reinforce its attain by way of numerous platforms together with digital. Spencer’s is constantly inserting its choices to the shoppers and in addition has in place advertising methods that assist improve the model recall and create model consciousness,’ it stated.
On the enterprise, Goenka stated 2020-21 noticed the advantages of the speedy and sturdy integration of Nature’s Basket, which it acquired from Godrej Industries, with Spencer’s ecosystem.
‘Nature’s Basket has benefited from synergies which embrace lean & environment friendly operations, cross leveraging merchandise and vital value financial savings,” he added.
In 2020-21, Spencer’s Retail, which operates 197 shops together with Nature’s Basket, had a consolidated income of Rs 2,428 crore.