Spar International is looking to open its second hypermarket in India within the next two weeks amid “cautious” plans to win over local consumers hostile to the growth of organised retail in the country.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The Netherlands-based retail group, which has joined forces in India with local retailer Max Hypermarkets, already runs one hypermarket in Bangalore.
The partnership between the two companies will see Max Hypermarkets, owned by the Dubai-based Landmark Group, open Spar-branded hypermarkets and supermarkets across India.
However, in contrast to the ambitious expansion plans of rival retailers like Reliance Retail, Spar is planning to open only nine hypermarkets in India in the next two years.
“We want to be cautious and do things bit by bit. We are very reluctant to pressure Max Hypermarkets,” a spokesperson for Spar spokesperson told just-food today (15 January).
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe likes of Reliance have faced fierce opposition to the growth of their retail businesses and have been forced to close stores in some states. Small “mom-and-pop” stores account for the vast majority of the sector and traders fear larger retailers threaten their livelihoods.
However, the potential prize to retailers in India is clear. India’s retail market is estimated at around US$350bn, a figure set to grow and which has caught the attention of multinational retailers like US giant Wal-Mart.
Nevertheless, Spar believes its “cautious” plans will stand its venture in good stead. “We have used the local dialect on our store in Bangalore to emphasis that this is a local company, which is looking to develop for Indian consumers,” the spokesperson added.
