Spencer on expansion spree; to invest Rs 1,500 cr for 325 new stores

New Delhi, Nov 18 (UNI) Spencer's Retail, a unit of RPG group utility CESC, is on an expansion spree with plans to invest Rs 1,500 crore for opening 325 more stores across the country in next 15 months, a move the company claims will help grow the business by 60 per cent.

"We will open 325 stores, including all types, over the next 15 months...we are going to infuse Rs 1,500 crore for the purpose,'' RPG Enterprises Vice-Chairman Sanjiv Goenka told reporters here today on the sidelines of India Economic Summit.

The funds for opening the stores will be pooled through internal accruals, he added.

He said the growth in retail has not been as robust as it had been predicted six months ago as the global slowdown has cetainly impacted the industry.

Ruling out any job cuts in the Spencer's, he said, ''The present jobs are totally protected, but we will go slow regarding the future hiring." Meanwhile, in view of the high rental costs, he said the company has been trying to renegotiate agreements with various developers.

The company, which currently owns 406 stores, has closed down 56 'non-performing' stores in last three months and lowered its revenue target for this fiscal to Rs 1,500 crore from the earlier Rs 1,800 crore. The shut down stores constituted about 12 per cent of its total business.

UNI TEAM AK AS1602