The company plans to open 400 new stores in the next two years. The target for sales revenues of Rs 12.5 bn would be achieved by the end of the current financial year. "We are continuing to expand our business with more stores, including hypermarkets. We will open as many stores as necessary and wherever they are required," Spencer's Retail President Vineet Kapila has told media.
It is planning to set up stores across the country, including Tier II and III cities. The company has currently 350 stores across India, including 34 large format hypermarkets. It sells wine in many of its stores and is an excellent source of procurement wherever it sells. In cities like Gurgaon, the wine drinkers are very happy with the range and prices of wines-both imported and domestic.
The current economic slowdown has apparently not affected the company's operations as it deals with mostly essential items, said Kapila, because, "Our main items of retailing are FMCGs, fruits and vegetables."
The profit margins have been under pressure, though. Admits Vineet, "The profit margin is not very big but the retail business is more about managing costs which we are successfully managing."
The company said in the last financial year, Spencer's increased its stores from 150 to 350 with a target of expanding by 400 more in the next two years. This implies a five-fold growth in three years.
The growth and success of such retail stores smells good to the wine producers and importers who are ever keen to explore and grab new Retail channels as the hotels are not much help in expanding sale. |