Kolkata, May 27 (PTI) Retail chain operator Spencer’s Retail has expressed optimism of a stronger Bengal economy, saying alignment between the Centre and state after five decades with a BJP government coming to power in the state could spur investments, development activities and consumption growth in the region.
The RP Sanjiv Goenka Group company, which has a strong presence in eastern India, particularly West Bengal, said improved sentiment and higher on-ground investments could translate into stronger purchasing power, benefiting the consumption sector.“West Bengal has seen a change in government. And now for the first time in 50 years, there will be Centre-State alignment, which will, I think, bear well for the state,” Spencer’s MD & CEO Anuj Singh told analysts in a recent earnings call while referring to the political situation in West Bengal.
The company expects both sentiment and economic activity to improve, leading to higher consumer spending.Speaking about the global geopolitical situation, Singh said, “We started the year well despite all the turbulence and macro geopolitical instability. That has not impacted us. We’ve got off to a good start.” Spencer’s, however, indicated that expansion through aggressive store additions is not part of its near-term strategy. Instead, the focus would remain on improving store productivity and driving same-store sales growth.The company said sales per square foot in the Spencer’s format improved to nearly Rs 1,700 per month in FY26 from around Rs 1,400 in FY25, with a long-term potential of reaching Rs 2,000.While the retailer does not plan large-scale expansion, it may add three to four Spencer’s stores during the year within existing clusters, such as Kolkata. Some of these may involve relocation of underperforming stores to high-growth areas, Singh told investors.For its premium grocery chain Nature’s Basket, the company said no store additions are planned as the immediate priority is improving the performance of existing outlets.On the financial front, Spencer’s reported a 6 per cent year-on-year rise in consolidated sales for the fourth quarter of FY26 to Rs 436 crore, compared with Rs 412 crore in the corresponding quarter last year.Margins stood at 18.8 per cent during the quarter against 19 per cent a year earlier.For the full year, consolidated sales declined nearly 10 per cent to Rs 1,800 crore from Rs 1,995 crore in FY25. The company attributed the decline to strategic restructuring, including exit from non-strategic northern and southern markets and closure of 49 loss-making stores during the second half of FY25. PTI BSM RGThis report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
