Retail in Asia

In Sectors

Spar sticks to large formats to expand food retail chain

Although it’s a bigger challenge to set up and expand a large format chain in the food retail business, Spar is planning to increase its footprint in India only through the 35,000-75,000 sq ft stores in the next three years. “The decision to go in for a bigger format is for better customer experience, better brand equity and, of course, a higher level of productivity, though the last one is not the ruling criterion,” said Mr Viney Singh, Managing Director, Max Hypermarkets.

That’s one of the reasons Spar has taken a longer time to grow in India, he added. “Now that we have established a proof-of-concept with our three stores, we will expand quickly,” he added. Most other comparable hypermarkets are in the region of 55,000 sq ft to 60,000 sq ft.

Max Hypermarkets is part of the Dubai-based Landmark Group and Spar India is a result of a licence agreement Max has with Spar International. It opened its first store in Bangalore in 2007, and currently, has three outlets (two in Bangalore and one in Hyderabad) in the country.