July 5, 2014: Spencer’s the retail arm of RP-Sanjiv Goenka Group which added 11 stores in the last fiscal would be adding 80 new hypermarkets across the country in the next four years. Currently Spencer’s has 127 stores with only 33 of the current outlets being hypermarkets with store size of more than 20,000 sq ft. The new hypermarkets which would be coming across North, South and East India would be in compact hypermarket format. The Goenka group would be investing Rs.250 crore for this expansion.
Spencer’s Retail head Shashwat Goenka was quoted as saying “Last fiscal, Spencer’s has added 11 stores. The same number of outlets will be added this year. We have been somewhat conservative after the initial foray with multiple formats seven years ago due to constraints in availability of real estate.” He further added that “Also, we have shut some stores and opened others. We have a successful growth format now, a store configuration strategy to go with it and real estate developments that are taking shape. Hence, the increased pace of growth.”
Spencers whose per square foot revenue of its stores has increased to over Rs.1,300 in the first quarter of 2014-15 is close to break even. The retail chain whose 80 per cent of the revenues are generated from food business is trying to increase the revenue from non food business. The company is looking forward to post a net profit for the first time in 2015.