Spencer’s to add 15 large stores

Spencer’s Retail, the RPG Group’s retail arm, that shut 56 of its unviable small format stores across the country last year, is now focusing on expansion.

“We have been able to relocate about half of the unviable stores. This year, we plan to focus on expansion,” Samar Singh Shekhawat, marketing head, Spencer’s Retail, said.
Spencer’s currently has 35 large-format stores.

It plans to add another 15 this year in cities including Chennai, Chandigarh, Bangalore, Hyderabad and Trichy at an investment of Rs 1,500 crore in two years.

It recently opened four Spencer’s Hyper stores, in Delhi, Jamshedpur, Bhuba-neshwar and Kakinada. 

Spencer’s now has 310 small-format stores and plans to add about 20-30 stores this year.

“We have shut all unviable stores and will not shut any more. We are now solely focusing towards our large format stores and expanding our offerings in the apparel, home, food and bakery and general merchandising segments,” Shekhawat said.

The retailer has set up a fashion studio in Delhi and plans to invest on visual merchandising, marketing and hire people for its sales team. The company will spend 3-4% of sales towards marketing for its initiative in fashion and apparels.

“We are looking at adding 2 more international brands this year. Currently, the international brands we offer contribute only 5% to our turnover, but in another 24 months it should contribute at least 10%,” Shekhawat said.

From last year’s Rs 729 crore, Spencer’s is targeting Rs 1,050 crore turnover in 2009.