Thanks, Saumya. Quite interesting. I will see whether the overlap of 'SMTWTFS' can be effectively used to reduce the distance between the columns.
A few points I learned on Calendar layout...
1. When the week columns are far apart (as in the present design), an alternate colored horizontal fill will greatly help in 'guiding' your eyes along the consecutive dates.
2. In a column, it is always better to keep all the digits in a vertical line. In the earlier versions of the present design, I staggered the digits for 'S' and 'W.' This one failed miserably while testing for readability among my friends.
3. "People judge a calendar by the cuteness of the image; not by the functionality or ease of reading of the dates." This led me to change the high contrast black fill of 'SMTWTFS' to the present 'no fill' outline 'SMTWTFS.'
Before
After