Spencer's hyper are megastores, which combine a supermarket with a department store. At least 15,000 sq. ft in size, they stock, on average, 70,000 items, giving shoppers fantastic deals across food, fashion, home and entertainment all under one roof.
The new entrants that are entering the retail scenario today are those which have with them a lot of backing from the financial institutions who are willing to finance their ventures. E.g. reliance fresh
Renewing its focus on hyper format stores this fiscal as a part of its expansion strategy & segment has been less affected by the current economic downturn.
It aims to scale up the number of hyper stores from 35 to 50 across the country .
Hyper stores need upto 30000 square feet and investment of Rs 1500 per square feet, or upto Rs 4.5 crore per hyper store depending on the size of the store. The expansion could push turnover to Rs 1250 crore by end of this
It would sell more international brands in future. Recently, the company introduced international names like Ladybird and Beverly Hills Polo Club.
In order to raise further resources, Spencer’s is looking at diluting 10 per cent of its equity in favour of private investors. It is believed to have already begun talking with a few investors in this regard.
The company will look at raising equity through IPO only after it achieve break-even. Spencer’s is also exploring induction of a multi-national retail player partner to sore up its back-end operations.
Spencer's Retail has decided to stay out of the competition. We don't want Spencer's Retail to be known as 'sabse sasta', and we are not into this race,