Spencers Retail Join Quick Commerce Race with JIFFY

Spencers Retail, part of the RP Sanjiv Goenka (RPSG) Group, has officially stepped into the quick commerce (q-commerce) sector with its new platform, JIFFY. Starting in Kolkata, the company aims to leverage its existing store network to fulfil orders within 20-30 minutes. By the end of the current quarter, operations will expand to Uttar Pradesh, covering its base of 89 stores in these two regions.

Quick Commerce 

Quick commerce is emerging as a driver for growth, especially in urban centres. Shashwat Goenka, Chairman of Spencer’s Retail, talked about how consumer preferences are shifting toward faster deliveries. The online segment currently contributes 10-11% to Spencer’s overall revenue, with plans to double daily online orders within the next three quarters.

Rationalising Operations 

In a move, Spencers exited loss-making regions, shutting down 43-44 stores in the South and the National Capital Region. This focus on core markets, primarily West Bengal and Uttar Pradesh, is expected to yield better results. Over the next year, Spencer plans to add 10-12 stores in these regions, focusing on its commitment to targeted growth.

Financial Performance in Q3FY25

The December 2024 quarter saw Spencer narrowing its consolidated net loss to ₹47.34 crore from ₹51.20 crore in Q3FY24, despite a 21% decline in revenue, which stood at ₹516.97 crore. On a standalone basis, the retailer’s net loss reduced to ₹29.14 crore, while revenue dropped by 24.4% to ₹431.03 crore. Notably, Spencer’s achieved an EBITDA of ₹17.5 crore, marking a 46% year-on-year increase.

Spencers Retail Ltd was trading at ₹84.08 as of 12:44 PM on January 17, down 2.14% today, up 4.51% over six months, but down 17.20% over the past year.

Nature’s Basket to Relaunch App

Spencer’s subsidiary, Nature’s Basket, catering to gourmet food lovers, will relaunch its application by the end of the month with a 60-minute delivery proposition. Currently operating 34 stores across cities like Mumbai, Pune, and Bengaluru, it plans to expand further by adding 3-4 stores in the coming year.

With q-commerce projected to triple in gross order value to $18 billion by FY27, Spencers is positioning itself to ride this wave, prioritizing convenience for urban consumers.

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