Spencer’s Retail, the retail arm of the RP-Sanjiv Goenka Group, is in the process of shutting down a dozen odd outlets of Spencer’s here, including its lone hypermarket, effectively exiting the city in a month’s time. The move is part of a plan to cut its losses and help the company turn profitable by the first quarter of the next fiscal.
Mohit Kampani, Chief, Operations and Merchandising, Spencer’s Retail Ltd, said that this was necessitated as the stores were not profitable at a regional level.
“For retail to be profitable a city must have both the small and large (hypermarket) formats. Pune was unique in that it only had the small store format,” he said. The company was expanding only in the hypermarket format, and will consider re-entering the city provided a suitable location was found, he added.