Spencer's Retail not to hold back Rs 1,500 cr expansion plan

RPG Enterprises' retail arm Spencer's Retail is continuing with its Rs 1,500 crore expansion plan, envisaged for the next two years, despite the economic slowdown.

The company, which said it planned to open 400 new stores in the next two years, is eyeing Rs 1,250 crore sales turnover by the end of the current financial year.  "We are continuing to expand (our business) with more and more stores, including hypermarkets. We will open as many stores as necessary and wherever they are required. Our expansion will continue," Spencer's Retail President Vineet Kapila told media.

Last November, Spencer's Retail announced a Rs 1,500 crore expansion to add 400 more stores by the end of 2009-10 fiscal. It was planning to set up stores across the country, including Tier II and III cities. The company has currently 350 stores across India, including 34 large format hypermarkets.

Stating that current economic slowdown has not affected the company's operations as it deals with mostly essential items, he said:  "Our main items of retailing are FMCGs, fruits and vegetables."

Asked about the company's profit margin, Kapila said:"The profit margin is not very big but the retail business is more about managing costs. We have been successfully managing our costs."

The company said in the last financial year, Spencer's increased its stores from 150 to 350 with a target of expanding by 400 more in the next two years and is targeting Rs 1,250 crore sales turnover by the end of the current financial year

 

TX:PTI