Spencer to look at large format segment
RP-Sanjiv Goenka led Spencer's Retail, a subsidiary of CESC Ltd, is looking at expanding in the large format segment even as it consolidates its position in small format segment. Rachit Vats reports.business Updated: Nov 28, 2012 22:35 IST
RP-Sanjiv Goenka led Spencer's Retail, a subsidiary of CESC Ltd, is looking at expanding in the large format segment even as it consolidates its position in small format segment.
The retailer, which has 147 stores of which 26 are hypermarket, is looking at opening 40 hypermarkets over three years. For the next 12 months it will open 14 large format stores over an average space of 25-30,000 sq ft and is eyeing Andhra Pradesh, Uttar Pradesh, National Capital Region, West Bengal, Chattisgarh, Jharkhand, Tamil Nadu and Karnataka.
"We plan to expand our hypermarket footprint by 55% over current trading area in the next 12 months," said newly promoted CEO Mohit Kampani.
"We will focus on the hypermarket format and not look to enter any new format soon. Next year we will have significant investments in upgrading our distribution centres and fresh processing centres which would improve product availability and freshness," he said.
"Spencer's have realized they will be more successful in the large format business. The business is turning around as they have reduced their losses and its quite possible they will pick up a partner soon," said an analyst.