Spencer’s holds back private equity stakes sale plan

The retail arm of RP-Sanjiv Goenka Group, has put on hold plans to sell up to a 20-per cent stake to private equity firms with the company looking to raise cash from the stake sale to push growth and cut losses.

However, the retailer reportedly shelved the stake divestment, after the management could not come to terms over the level of engagement with the private equity partner.

According to Sanjiv Goenka, Spencer's is now open to an alliance with foreign multi-brands retailers when they are allowed entry.

Spencer's, with over 200 stores across 45 cities, has lined up an ambitious expansion strategy and restructured its business plan during the economic crisis following its exit from small neighbourhood stores.  

It is now focused on large format hypermarkets and plans to add 2.5 million square feet of selling space over the next three years.

The ratil company has also repositioned its product profile to meet the requirements of the upper middle class. Goenka said recently that only three or four domestic retail players would be able to survive over the long run and Spencer's would be one among them.