Spar to boost food retail co-operatives

Dutch retail brand Spar, the world's largest association of voluntary trading retail food stores, is getting into the Indian retail space through an alliance with food distribution company, Radhakrishna Foodland.

According to Raju Sheté, chairman and managing director, Radhakrishna Foodland, "We believe the entry of Spar into India will usher in a new cooperative model in food retailing in the country protecting the interest of independent retailer members."

Radhakrishna Foodland will act as licensee of Spar and sell products under its brand in India.

The first Spar store in the country will be opened in December 2004 in Mumbai.

In the Indian market, Spar will aim to provide value added retail solutions encompassing an integrated distribution and logistics model to support independent retailers.

The alliance will allow small independent retailers access to modern retail solutions, marketing and merchandising assistance, store refurbishment, staff, process and systems training, point of sale development and implementation and most importantly, sourcing most of their products from a single distribution platform with all the supply chain efficiencies.

Radhakrishna Foodland has an agreement with an independent retailer to provide retail solutions, supply the required merchandise and, through a sub-licensee arrangement, permit the retailer member to use the Spar brand.

The Spar retail model eschews competition and relies on cooperation.

This customised Spar system supports scaleable retail models of members and meets the needs of retail formats in all forms and sizes.