Nature’s Basket launches ‘Artisan Pantry’- Shashwat Goenka expects better Q3 performance, plans to open 2 more stores

Nature’s Basket launches ‘Artisan Pantry’: Shashwat Goenka expects better Q3 performance, plans to open 2 more stores

After entering into the luxury food retailing segment with the launch of Artisan Pantry in Phoenix Palladium Mall in Mumbai, Shashwat Goenka, Chairman of Spencer’s Retail & Nature’s Basket, said that the company is working towards a better third quarter for Nature’s Basket in comparison to the second quarter. Nature’s Basket, the gourmet food retail chain from Spencer’s, launched a new format under brand Artisan Pantry in November this year.

RP-Sanjiv Goenka Group had acquired Nature’s Basket Ltd from Godrej Industries Ltd in 2019 for Rs 300 crore. Currently, Nature’s Basket operates 32 stores. The company said that the idea behind the Artisan Pantry is to move from a premium grocery destination to a high-end luxury format. This, Shashwat Goenka said, will be targeted at the rising affluent class and changing consumer tastes. “The increasing disposable income of urban consumers has fueled a demand for premium goods and services across diverse sectors. This surge is not confined to specific industries, as luxury fashion, technology, and lifestyle products are all witnessing heightened interest,” he said.

Here are edited excerpts from the interaction with Shashwat Goenka…

What is the idea/ rationale behind entering into experiential centres by the brand?

The idea behind the Artisan Pantry is to move from a premium grocery destination to a high-end luxury format – which will expose customers to one of the most experiential and luxury formats of grocery in the world. The Artisan Pantry store at Palladium Mall would be one of Asia’s best supermarkets. Through this format, the brand will have a high degree of market differentiation, catering to food enthusiasts, and also supporting artisinal producers.

The new format under Nature’s Basket Artisan Pantry will be much larger in size (this store is 12000 square feet), versus our traditional format which was 2500 square feet on average. These stores will lead with experiences and international foods, unlike our older stores which led with packaged goods as a category.

Tell us about the offerings at the new experiential stores.

The stores will have a lot of firsts – live coffee roasting, artisanal chocolate made-to-order, in-store bakery with unique range of breads, freshly stone ground spices and blends, freshly squeezed nut milk and nut butters. The stores will also have unique sections for the first time in India – such as a Truffle Bar, Honey Bar, a Cheese room with over 250 varieties of cheese. The Palladium Mall store also has a cooking studio for classes by some of the world’s most renowned chefs. The store will also have caviar, wines, a gelateria, a cafe, and of course, luxury gifting by The Gift Studio. The stores will also have a selection of products in homeware and infant categories.

How did the company perform during the September quarter? Will an entry into the luxury grocery retailing help the brand better its financials?

Overall, the second quarter has been a good one, with a double digit growth, reduced expenses, and improved profitability. The luxury stores under Nature’s Basket Artisan Pantry are designed to give us higher revenues and higher margins. Costs per square foot are also lower, and therefore store profitability is more enhanced. These stores should deliver profits from their second or third month of operations. The Third quarter for Nature’s Basket should be even better than the second quarter.

What percentage of your sales come from your offline store as compared to your online platform?

The online business today contributes 15 per cent of the topline and it’s a very fast-growing channel for us. Our app has been recently upgraded, and reflects the needs, preferences and shopping behaviours of our discerning customers. The UI/UX has been designed keeping this in mind. Overall, we have an omnichannel approach, and for us, both channels are equally important.

As we move towards the end of the year 2023, what are your growth/expansion plans going forward?

We shall open 2 more stores under the Artisan Pantry banner before the close of the fiscal – one more in Mumbai and one in Kolkata. Over the next year, we plan to add around 5 Nature’s Basket stores, and 3-5 Artisan Pantry stores. These would be not just in Mumbai and Kolkata, but also in geographies such as Bengaluru, NCR and Pune.

Have you witnessed major shifts in consumer behaviour when it comes to grocery shopping?

The luxury grocery market is a niche segment that caters to a specific set of consumers. However, there have been major shifts in consumer behaviour when it comes to grocery shopping in general. Consumers are also becoming more interested in sustainable foods and business practices, as well as healthier diets. The performance of luxury retail indicates that it is weathering global inflation far better than most thanks to its pocket aces of exclusivity and affluent customer spending. It’s a winning hand, the segment has played before in the face of similar economic uncertainty.

How did the brands perform during the festive season?

The festive season has been promising, and we have experienced high double digit growth during this period. The Christmas season is normally dominated by confectioneries, cheese, wines, healthy snacking, tea, cakes, cookies, cold cuts, fruits, and baking. For us, we believe our artisanal ranges of products across all these categories will help grow our share of wallet and help consumers move up the ladder as well.