Inaugurating the first Spencer’s superstore on eastern metropolitan bypass (EM Bypass) in Kolkata on Sunday, RPG Retail discussed its expansion plans. The company plans to invest nearly Rs 1,200 crore to set up 2,000 stores across India by 2009, with 40 of this total expected to open within this week. Of the 2,000 stores, over 60 per cent will be Spencer’s outlets.
In the stores, the company will also have its own branded products in the groceries, food items and clothing segments. Spencer’s currently has 175 outlets in the country across 30 cities comprising 10 hypermarkets, six supermarkets, three Fresh, 25 Express and 131 Dailies.
With the new investments, RPG Retail expects to achieve nearly 150 per cent revenue growth, touching a turnover of Rs 1,500 crore by the end of this year as compared to Rs 600 crore last year. The investment will be mostly funded from internal accruals.
The company also plans to raise capital in the “next two to four quarters” to fund its expansion plans. However, size of the capital is not disclosed.