Dear Shareholders,
I am honoured to present Spencer's Integrated Annual Report for
2023-24. Our team, empowered by a resilient corporate culture, has consistently
demonstrated their adeptness in surmounting challenges of every magnitude. This strength
stands as a hallmark of Spencer's journey, evolving from a small brick-and-mortar store to
one of the leading OMNI-Channel players in the Indian retail domain.
Navigating the Macro-Environment
In 2023-24, the Indian economy showcased remarkable strength, recording
a growth rate of 8.2%, the highest among major economies worldwide. This significant
achievement stands out amid global economic moderation, influenced by monetary tightening
in developed economies and persistent geopolitical conflicts. India is primed for a decade
of dynamic growth, aiming to reach the US$ 7
Trillion mark by 2031 and secure its position as the world's
third-largest economy. This transformative journey marks a significant leap forward in
enhancing the standard of living for its citizens, likely resulting in a surge in per
capita income and transitioning the country into the upper-middle income strata. Such
growth will be fuelled by structural reforms, technological advancements, and a burgeoning
middle class, promising a thriving, inclusive economy where the benefits of growth are
shared broadly.
With optimism and a forward-thinking approach, we look forward to the
future with confidence and excitement, ready to seize the opportunities ahead and create
lasting value for all our stakeholders.
Strategic Imperatives During the Year
During 2023-24, Spencer's has been laser-focussed on the efficient
allocation of resources, a strategy that has been pivotal in optimising our operations and
significantly improving overall business profitability.
In a strategic move, management exited high-loss stores in
non-strategic locations. This decision aligned perfectly with our strategic priorities for
the year, allowing Spencer's to streamline our portfolio network and drive operational
excellence. Consequently, we closed 19 non-performing stores across the Southern region,
including key locations like Chennai, Kerala, and Hyderabad.
We are thrilled to announce the launch of Artisan Pantry, a new luxury
grocery format under the Natures Basket brand. This initiative marks a significant step in
our goal to offer exclusive, high-quality grocery products for discerning consumers
seeking premium experiences.
The launch of Artisan Pantry aligns with our strategy to meet the
growing demand for luxury and premium grocery offerings. This new format not only
differentiates Natures Basket in the competitive grocery market but also elevates our
brand's prestige and allure. We anticipate strong customer interest and engagement,
driving increased foot traffic, higher sales, and enhanced customer loyalty.
Looking ahead, we plan to expand Artisan Pantry to additional
locations, drawing on our expertise and customer insights to consistently refine and
enhance the luxury grocery experience.
Additionally, we launched ‘Wholesale Bazaar', a new
format aimed at bridging distribution gaps in feeder markets, particularly for local
neighbourhood Kiranas. This initiative is designed to empower small retailers by providing
direct access to a wide range of products at competitive prices, streamlining their supply
chains, and enhancing their ability to meet consumer demands effectively.
In our OMNI-Channel business, we introduced an express delivery
proposition in Kolkata from second half of 2023-24 onwards, allowing consumers the option
to choose delivery within an hour. This service saw a significant improvement in the
number of orders and has been expanded to cities like Lucknow and Varanasi.
Nurturing Our Human Resources
Our employees are not just our greatest asset, they are the driving
force behind our success. Their growth and well-being are foundational to everything we
do. We have fostered a dynamic culture of continuous learning and development, investing
over 150,000 hours in training across various programmes. From leadership to functional
and behavioural skills, these initiatives empower our team with the tools they need to
thrive. We are deeply committed to creating an inclusive and diverse workplace where every
employee is valued, respected, and empowered to contribute their best. Our Company's
dedication to diversity and inclusion is evident in achieving 21% representation of women
in our workforce, reflecting our commitment to equity and opportunity. Together, we are
shaping a future where everyone can thrive and succeed.
Robust Governance
We have a robust governance framework in place that ensures
transparency, accountability, and ethical conduct in all our dealings. Our governance
policies undergo regular review and enhancement to align with global benchmarks and
regulatory mandates. Supported by a Board comprising 50% Independent Directors, our
rigorous internal controls play a crucial role in maintaining financial integrity and
operational transparency.
Way Ahead
Looking forward, our organisation is well-positioned for sustained
growth. We will persist in prioritising strategic initiatives that drive operational
excellence and sustainable expansion. Our commitment to customers, employees, and
stakeholders remains strong as we navigate forthcoming challenges and opportunities with
confidence.
As I conclude, I wish to express my heartfelt gratitude to our
stakeholders for their continued trust and support. Your firm belief in our vision and
strategy has been instrumental in our journey to fortify Spencer's commitment to
delivering enduring value and making a positive societal impact.
Regards,
Shashwat Goenka
Chairman