Spencers Retail on course to expand rapidly

RPG Group’s Spencer’s Retail, one of the early entrants in Indian retail business, is on an expansion spree to take on its peers. The company is planning to invest Rs.3500 crore in its retail business during the next 3 years and also come out with a Rs.1000 crore IPO by next year.

The group operates under 5 retail segments – Spencer’s Hyper, Super, Daily, Express and Fresh. It expects to have retail sales of Rs.10000 crore in next 5 years. Apart from it, there are other retail outlets such as Music World, Books and Beyond, RPG Cellcom and Health and Glow. Apart from expansion, it is also renovating its existing stores.

Spencer’s Retail has also merged its power company CESC with Pathik Retail, the holding company of Spencer’s Retail, to draw synergies owing to different cashflow requirements of both the companies.

The company’s hypermarket chain Spencer’s Hyper would increase outlets from 11 to 60 within three years. It is not positioned as a discount store and besides 30000 products offers services like Insurance, health check, personal loans, travel assistance, live kitchens and specialty foods.

The supermarket chain, Spencer’s Super would go up from 6 to 20 by 2008. the smaller formats - Daily, Express and Fresh - would go upto 600 by 2008. The total number of all its retail outlets would grow from 400 to 2000 stores by 2009 and 5,000 stores by 2011.

visit: http://www.labnol.org/india/corporate/spencers-retail-on-course-to-expand-rapidly/729/