Spencer’s to open 15 Large stores, invest Rs 100 crore
RPG Enterprises’ retail arm Spencer’s Retail will invest about Rs 100 crore to open up to 15 large stores across the country this year. The company also said as part of its growth strategy, it will focus on expanding in the Tier-II cities and concentrate more on private labels.
“This year we will open 10-15 large format stores across the country and add half-a-million square feet of retail space. This will entail an investment of up to Rs 100 crore,” Spencer’s Retail CEO Vineet Kapila told reporters on the sidelines of Technopak Leadership Forum 2010 here on Thursday.
Spencer’s currently has 26 large format stores with over one million square feet of retail space. The company is also planning to go aggressive on the private label business. “Currently private labels constitute around 15 per cent of our annual sales. By end of this year, we are looking to increase the share of private labels to 30 per cent and for this purpose we will launch new labels,” he said.
When asked about the company’s plans to dilute some stake, Kapila said, “we will look for the right time and the right price to sell stake. At present we have sufficient revenue to fund our expansions plans.” Last year Spencer’s had announced plan to dilute 20 per cent stake to raise fresh capital.
