Spencer's Retail forays into quick commerce segment

Spencer's Retail on Thursday announced its entry into the quick commerce space with operations starting from West Bengal.

The retail chain aims at delivering orders within 20-30 minutes using its existing stores to meet the demand for fast delivery.

"The existing 89 stores of ours will cater to the quick commerce segment in both Bengal and Uttar Pradesh. The operations will begin from West Bengal. We don't incur any capital expenditure for this initiative as we are leveraging existing stores. A dedicated third-party delivery system will handle logistics," Spencer's Retail Chairman Shashwat Goenka said.

He stated that the retailer will evaluate building a dark stores network if the situation demands, but now the service will be catered from existing outlets.

Goenka noted that quick commerce has impacted modern retail and emphasised the need to adapt to changing consumer preferences.

He revealed that the company is looking to double its daily online orders, which currently contribute 10-11 per cent to its overall revenue.

After Bengal, Spencer plans to roll out its quick commerce services in Uttar Pradesh, he said.

The retailer, however, has exited the South and NCR regions, closing all stores to focus solely on its operations in West Bengal and Uttar Pradesh.

"After exiting South India and NCR, we have 89 stores. Of which 47 are located in Bengal and the rest are in Uttar Pradesh. This geographical consolidation allows us to enhance efficiency and cater to local demands more effectively," Goenka added.

Spencer's quick commerce launch marks a strategic move to capitalise on the growing demand for faster delivery services, aligning with its renewed focus on select markets.