24 September 2007
Dubai: Landmark Group, the Dubai-based retail conglomerate, will next month break into the Indian food shopping sector through an agreement with international retail franchise Spar.
The agreement licenses Max Hypermarkets, part of the Landmark Group, to open Spar branded hypermarkets and supermarkets across India, including seven new stores over the next two years.
The first two stores, a 100,000 square foot hypermarket and a 30,000 square foot supermarket, will open in Bangalore next month.
The news, which was first reported in Gulf News last month, represents Landmark Group's first venture into food retailing. The deal with Spar follows earlier attempts to take French hypermarket chain Carrefour into India through a franchise agreement.
Company officials said they do not underestimate the challenge of breaking into the food retail industry, claiming they will benefit from Spar's retail expertise since it was founded in The Netherlands more than 70 years ago.
"The Landmark Group is happy with this association. We believe it will help the group to expand into food retailing and bring in international standards and operations on par with the rest of the food retailers globally," said Micky Jagtiani, chairman of Landmark Group.
"The Group's expertise in non-food retailing, in partnership with Spar's proficiency in food and hypermarket operations, will help create a unique and compelling consumer offer for India."
Officials close to the deal said the company is considering whether to open its third Spar store in Chennai, or to expand its presence further in Bangalore, where the city's booming IT sector has created a huge pool of mid to upper mid-level consumers.
The company will initially focus on opening hypermarkets in Southern India, but eventually aims to expand its portfolio throughout the country, depending on the success of its initial venture and its ability to secure appropriate sites, officials said.
Gordon Campbell, managing director of Spar International, said the breakthrough into India represents major part of Spar's future plans.
"This is an exciting and important development for us. Developing Spar Hypermarkets in India is a key element in our strategic plan," he said. "India is a market with enormous potential and we are pleased to have found an excellent partner in Max Hypermarkets."
By Robert Ditcham
Gulf News 2007. All rights reserved.
