Spar International Store. (Photo: Spar International)
Dutch food retailer and Indian parter part ways
Monday, May 14, 2012, 00:30 (GMT + 9)
Amsterdam-based food seller Spar International is cutting ties with its Indian partner Max Hypermarket India Pvt Ltd so they could each pursue different expansion strategies.
"In order to take their respective businesses forward in India, SPAR wishes to extend its footprint nationwide through new partnership arrangements with a range of national and regional retailers," the joint statement said.
Part of the Dubai-based Landmark group, Max Hypermarket said that the two companies, which have been partners for five years, will not renew their licensing agreement past 31 December 2012. Max Hypermarket will instead operate on its own in India.
“While Spar wishes to extend its footprint nationwide through new arrangements with multiple national and regional players, Max is looking at working and investing with other partners to expand its business in India,” said Viney Singh, MD of Max, DNA reports.
The firm runs 13 Spar Hypermarkets, each store with an average size of 50,000 sqft. The stores are located in Bangalore, Mangalore, Hyderabad, Coimbatore, Delhi, Pune, Gurgaon and Vijayawada under a licence agreement signed in 2007.
Max will continue to operate these Spar stores and will rebrand them once it acquires a new partner, said Singh.
“Max Hypermarket will be looking at potential partners with whom we can expand its businesses in India, post which the stores will be rebranded in due course,” he said.
Under this agreement, Max Hypermarkets was responsible for the whole business operation encompassing everything from capital expenditure outlay, day-to-day activities and management control. Spar, in contrast, provided technology and best practices in international retailing and technical expertise, domain-B reports.
Spar is the world’s largest international food retail chain, with over 12,000 stores spread across 35 countries.
By Natalia Real