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Spencer’s to focus on food & bakery services

Posted by retailigence on September 25, 2008

Spencer’s Retail has decided to focus on food and bakery services in its stores in a bid to position itself on the ‘retailtainment’ platform. The RPG retail flagship intends to create a food court in each of large format stores by carving out around 3,000 sqft.

While the food courts will be rolled out under the ‘Modern Menu’ brand, plans are also afoot to replicate such food courts in Spencer’s top 1,000 small-size outlets. The decision to foray into food and bakery services was triggered by Spencer’s consumer research which revealed that a shopper spends an average of 90 minutes in the stores during weekend.

“Hence, the need to evolve the stores as a retail entertainment destination was felt. It will create an experience for consumers and increase the average bill size,” a Spencer’s Retail spokesperson told ET.

Spencer’s has thus tied up with reputed food joints, restaurants and coffee shops to set up shop-in-shop within the food courts. This includes tie ups with Flury’s, Monginis, Bread Talk, Daily Breads, Pizza Corner, Nirula’s, Cafe Coffee Day, Barista and Tiffany for such shops.

“The food and bakery services will contribute around 5% to our turnover. We have agreed upon a 15-20% revenue sharing with partners,” the spokesperson added.

Source: Economic Times


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