RPG Group to open 60 more Spencer's retail outlets this year
Kochi, Sep 1 (UNI) The Rs 9,500 crore RPG Group is planning a major expansion of its flagship retail brand Spencer's with 60 more stores to be opened across the country this year, Mr J H Mehta, President, Spencer's Retail, said today.
Addressing a press conference here on the occasion of Spencer's opening its 69th store in the country in Kochi, Mr Mehta said this was the fifth Spencer's in Kerala. Nearly 20 new stores will be opened in ten different towns in the state this year, he said.
Describing the RPG Group as a pioneer in the modern retail format in India, he said the company had aggressive plans to create a strong national footprint. The stores, catering to the entire domestic shopping needs of customers, will come in four formats -- Spencer's Fresh, Spencer's Daily, supermarket and hypermarket -- ranging from 3,000 sq ft to 40,000 sq ft.
On an average, the investment per sq ft of space was Rs 1500, he said.
On the entry of foreign direct investment in the retail sector, Mr Mehta said there was scope for everyone to grow. The market penetration, which was three per cent right now, was expected to grow to ten per cent by 2010. This growth will enable any number of players to be accommodated in the retail sector, he added.
The turnover was doubling by the month, he said as per the latest monthly figures, the annualised turnover would be Rs 500 crore.
Describing the Kerala market as extremely promising, he said Spencer's first stand alone store for fresh food, including fruits, vegetables, dairy products, meat and fish, will be opened in Thiruvananthapuram next month. The company was also planning to open its first hypermarket in Kozhikode by December and a second one in Kochi later.
Stating that Spencer's, which was established in 1865 in Chennai, was the oldest retail brand in the country, Mr Mehta said the RPG Group had bought the brand in the 1980s. In 1995, it had tied-up with Dairy Farm International to open the retail stores under the brand name of Food World. However, after a split from the Dairy Farm International in 2005, the RPG Group had revived the Spencer's brand and was planning for a rapid growth all over the country.
UNI ARC ROY 1620