Spar, Max Hypermarket not to renew partnership in India

14 May 2012 (Last Updated May 14th, 2012 02:00)

Netherlands-based independent food retail chain Spar International and Dubai-based Landmark Group's Max Hypermarkets have decided to part ways and pursue separate strategies to grow their existing retail presence in India.

Netherlands-based independent food retail chain Spar International and Dubai-based Landmark Group's Max Hypermarkets have decided to part ways and pursue separate strategies to grow their existing retail presence in India.

The current license agreement between the two parties will therefore not be renewed after 31 December 2012.

Spar intends to extend its footprint nationwide through new partnership arrangements with a range of national and regional retailers.

Separately, Max Hypermarkets is in discussions with potential partners to expand their business in India.

In 2007, Max Hypermarket had signed licence agreement with Spar, a food retail chain with over 12,000 stores in 35 countries, to open Spar branded hypermarket stores.

Currently, Max operates 13 Spar-branded hypermarkets, each with an average size of 50,000ft², across Andhra Pradesh, Karnataka, Maharashtra, New Delhi and the national capital region (NCR).

Max Hypermarkets India MD Viney Singh said the company will continue to operate the existing Spar stores and will rebrand them once it finds a new partner.

Spar International does not financially invest in any market, but signs license agreements with independent retailers in different markets to use its brand name.

The food retailer also provides technical expertise for the front-end and supply chain for its partners.

Spar International managing director Gordon Campbell was quoted by The Economic Times as saying that the company believes it has the opportunity for other partners to develop stores at a quicker speed.

"We would be interested in tying up with 4-5 partners for different regions," Campbell said.