Spencer's Retail Limited, the retail arm of the Rs 13500 crore RPG group, is renewing its focus on hyper format stores this fiscal as a part of its expansion strategy, as it feels that segment has been less affected by the current economic downturn.
Speaking on the sidelines of a CSR programme of the group in Kolkata, Samar Singh Sheikhawat, vice-president for marketing at SRL, said, “Sales have not been affected so much since Spencer's Retail is not a discount retailer”. As a part of its expansion strategy, it would focus more on hyper stores or the large stores than the smaller formats. It aims to scale up the number of hyper stores from 35 to 50 across the country by the end of this March 2009 since they are als earn more revenue, said Sheikhawat.
The company plans to open 400 stores across different formats in India by the end of this fiscal despite the slowdown. It will be investing close to Rs 800 crore this fiscal and Rs 700 crore next fiscal on this expansion. Hyper stores need upto 30000 square feet and investment of Rs 1500 per square feet, or upto Rs 4.5 crore per hyper store depending on the size of the store, said Sheikhawat.
Eastern region at present has four such stores, and another two were in the pipeline here. North would have the largest number of hyper stores, he added. The expansion could push turnover to Rs 1250 crore by end of this fiscal. The company was betting on fashion and apparel sales, which now contributed roughly eight percent of total revenue, added Sheikhawat. It would sell more international brands in future, he said. Recently, the company introduced international names like Ladybird and Beverly Hills Polo Club.
