This story took a year in making. Catching hold of the elusive Shashwat Goenka became a challenge for the Retailer team, as each of the members tried to coerce an interaction with him from separate channels. The reason: In a graceful transition of leadership within the esteemed RP-Sanjiv Goenka Group, Shashwat Goenka assumed the pivotal role of Chairman at Spencer's Retail and Nature’s Basket, a leading multi-format retailer under the conglomerate's umbrella in 2023. With this appointment, the heir apparent, Shashwat, stepped into the shoes of his father, Sanjiv Goenka, who stepped down from his position as Chairman and Director of the company.

This momentous decision underscored the meticulous succession planning undertaken by the organization. Given Shashwat's decade-long dedication to steering Spencer's towards excellence, coupled with his role as an Executive Director since November 2018, the board's choice to entrust him with the chairmanship was both a natural progression and a vote of confidence in his leadership acumen. Moreover, his multifaceted role within the RP-Sanjiv Goenka Group, including his positions on the boards of several listed companies, attested to his long-term astute business acumen and leadership prowess.

As Spencer’s Retail embarks on a new and refreshed chapter under Shashwat's leadership, the company remains committed to delivering exceptional value to its customers and stakeholders. With a visionary approach and unwavering dedication, Shashwat Goenka is poised to lead Spencer’s Retail to even greater heights of success in the dynamic retail landscape, beginning with the reinvigoration of the Nature’s Basket brand.

In Focus: Nature’s Basket

Retail has always been a core part of RP Sanjiv Goenka Group, and this led to the acquisition of Nature’s Basket in 2019 from Godrej Industries for Rs 300 crore. With Nature’s Basket, the group’s flagship retailing arm, Spencer’s, got an entry into the premium grocery segment.

“Talking about personal experiences, grocery shopping has always been a fun and enjoyable activity with family, no matter whichever part of the world we visit. Our idea is to bring to India some of the best concepts and experiences from around the world, and also to create some unique grocery experiences that would be benchmarks for the world as well,” said Shashwat Goenka, Chairman, Spencer’s Retail.

As of December 2023, Nature’s Basket was operating 33 stores and would be adding there more stores in this financial year. Recently, they unveiled the third experiential concept store at Krishna Curve Mall, Mumbai. The brand has stores in six major cities in India - Mumbai, Bangalore, Pune, Delhi, Gurgaon and Kolkata. “These are large markets and still have a lot of potential. In the immediate future, our expansion plan is to open more stores in these cities over the next few quarters, and then explore other geographies. We would be adding 5-6 stores every year,” asserted Goenka.

Diversified Offerings

Nature’s Basket offers more than 10,000 SKUs, which are sourced from different parts of the world and cover all categories of food. From fresh produce, encompassing locally and internationally sourced fruits and vegetables, to premium cuts of meat and a variety of seafood, the store caters to discerning customers. A dedicated bakery and deli section offers freshly baked goods and deli items.

The brand also curates a collection of high-quality cheeses and dairy products. Gourmet and specialty foods, including imported sauces, condiments, and snacks, contribute to the store's distinctive character. The international cuisine category showcases products from various global culinary traditions, and an emphasis on organic and healthy foods caters to health-conscious consumers.

The beverage section includes fine wines and other drinks. Customers can explore gourmet snacks and a variety of chocolates and confectionery. The store also provides kitchen and pantry essentials, such as cooking ingredients, spices, and oils.

As premium customers further upgrade, the brand has stepped into luxury food retailing, and launched an even-more gourmet, world-leading food shopping experience with its new format – Nature’s Basket Artisan Pantry.

Gourmet to Luxury

The Artisan Pantry will take things up a notch for Nature’s Basket, offering imported wines, a variety of cheeses, a dedicated section for artisan chocolates, gourmet fruits like Yuzu lemon, multi-colored corn, Japanese Apple Fuji, and more. “With our new format, we have added not just experiences across all food categories, but also added new categories such as Baby Food, Books, and Kitchen Accessories as well. This diversification is a strategic move to capture a broader market and meet the evolving needs of consumers,” he explained.

The first Artisan Pantry has been launched at Phoenix Palladium Mall in Mumbai, featuring a spacious 12,500-square-foot store. The store includes a restaurant and live kitchens.

Goenka noted, “Nature’s Basket was essentially in the gourmet retailing and premium space. We are now going into luxury grocery, which will be heavy on experience. It’s modeled on the Harrods Food Hall concept. This is going to redefine what gourmet luxury is – not just for high-end consumers but for every aspirational consumer as well.”

The concept stores under the Nature’s Basket Artisan Pantry brand would have an area of 7,000-12,500 sq ft – much larger than the 2,000-2,500 sq ft Nature’s Basket stores. Nature’s Basket would be at the premium end and Nature’s Basket Artisan Pantry at the luxury end.

“A lot of things that are going to be available in these concept stores will be for the first time in India – whether it’s a Buddha hand lemon, or white strawberries or fresh yuzu fruit from Japan or cactus fig from Europe,” Goenka said. Sea asparagus is something that’s not available anywhere in Asia and we are actually going to be importing it from Holland,” he added.

This financial year, three to five Nature’s Basket Artisan Pantry stores are likely to be launched.

Elevating Consumer Experience

Nature's Basket has positioned itself as a leader in the digital grocery landscape, harnessing a diverse array of technology solutions to enhance customer satisfaction and operational efficiency. With multiple platforms available for ordering — including the Nature's Basket App, phone calls, WhatsApp, and video calling — the company has witnessed a significant uptick in online sales, which currently contributes 15 percent of the topline. “Online channel will contribute 20-25 percent of the business in next 2-3 years,” stated Goenka.

At the core of Nature's Basket's technological infrastructure lies an in-house designed Order Management system, seamlessly integrated with SAP ERP, ensuring smooth and efficient operations. Complementing this system are sophisticated analytical platforms like Moengage and Google Analytics, which provide invaluable insights into customer behavior and preferences. The mobile app, equipped with features such as Natural Language Search and Customer Profile-based rewards, fosters enhanced engagement and loyalty among users.

To streamline inventory management, Nature's Basket utilizes proprietary technologies like iPRO, an internally developed Inward/GRN app. This innovative tool optimizes inventory processes, ensuring accurate stock levels and minimizing wastage. Additionally, Disha, a versatile product, further simplifies operational tasks, enabling seamless task completion, tracking, collation, and review.

Flourishing Through Strategic Partnerships

The brand continues to expand its product offerings and reach through strategic collaborations and partnerships with renowned brands. Recent alliances with esteemed names like The Whole Truth, Makaibari, Haribol, and Dr. Vaidya underscore its commitment to enhancing its product assortment and delivering exceptional quality to customers. “These partnerships not only enrich the selection available to shoppers but also introduce unique and high-quality offerings that cater to diverse preferences. By embracing collaboration as a cornerstone of our strategy, it showcases our dedication to innovation and meeting the evolving needs of its customer base,” he said.

Eyeing Rs 300 cr Milestone

Nature's Basket continues its growth trajectory, marked by robust year-on-year expansion in double digits. This success is attributed to strategic initiatives aimed at enriching the product assortment, elevating in-store experiences, and enhancing the quality of produce. The brand reported a revenue of Rs 260 crore last year, and the projection for the current year anticipates surpassing the Rs 300 crore mark. “By prioritizing assortment diversity, immersive in-store experiences, and product excellence, we reaffirm our commitment to meeting evolving consumer demands and sustaining our positive growth trajectory,” he concluded.