Spencer’s Retail is a huge disappointment. It is a case of the promoters & the management running aground a hugely successful model and brand. Spencer’s have shut down all outlets in Chennai too. The promoters’ priorities are only towards their new venture - IPLT20 - LSG.
Chennai is the original home of Spencer’s Retail, the old Spencer’s from the British rule to the pioneering modern retail format launched in late-1990’s in Chennai. Spencer’s have exited very old, high footfall & iconic outlets in Chennai. All of the outlets are upscale marquee locations and retail spaces that any retailer would die to have.
There has been a significant decline in qualitative & quantitative metrics around their business & business performance over the last few years since the listing of Spencer’s Retail, especially Gross & EBITDA margins, decline in same store growth sales. The management frequent narratives around the shift to high margin, non-food business merchandise over the last few years has not moved a needle and there has only been an erosion of margins and shareholder’s wealth since listing.
It is a sad state of affairs that a pioneer in modern retail format in India & an iconic brand is being run to the ground. The promoters could have sold off the retail business or at least a part of the retail business to derive some value
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