RPG group to plans Rs2,500 crore expansion for Spencer's Retail
09 Mar 2007
He, however, ruled out any tie-up with a foreign retail chain. Goenka said the expansion plan involved setting up more than 4,000 stores by 2011 spread across five retail formats - hypermarkets, supermarkets, daily stores, express stores, and fruit and vegetable stores.
Spencer's has eight hypermarkets in the country. Goenka said over the next three months the company would open one store every day and two stores every day over the next six to 12 months. The stores will range between 2,500 square feet for the ''neighbourhood express stores'' and over 60,000 square feet for the hypermarkets.
"By 2011 we are looking at a total retail space of 15 million square feet for our company," he said.
The funds would come from both internal accruals and the market. He said the company would raise funds for the planned expansion through a mix of resources, which includes private placements and internal accruals.
He also did not rule out the possibility of a public issue and a fresh listing of its retail venture. The company does not plan to purchase any space for its retail ventures. "All our stores will be on leased space," Goenka said.
Organised retail is in the country is expected to see big growth over the next few years.