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To launch 2,000 Spencer stores by '09: RPG Group
The Goenka brothers are all set to flood the retail space with 1,825 new Spencer stores by 2009. A revamp of existing outlets is also on the cards. CNBC-TV18 reports on what the Goenkas are doing, to fund and execute this ambitious task.
The Goenka brothers are all set to flood the retail space with 1,825 new Spencer stores by 2009. A revamp of existing outlets is also on the cards. CNBC-TV18 reports on what the Goenkas are doing, to fund and execute this ambitious task.
RPG Group chairman Harsh Goenka is planning on launching an average of two Spencer stores a day for the next two-and-a-half years! It plans to increase the number of stores from 175 at present to 2,000 by 2009.
Goenka is also planning an IPO of Rs 1,000 crore for Spencer retail. While it's unclear how much stake the promoters will dilute through this offer, the groundwork for Spencer's market debut has already begun.
In April, Spencer's holding company Pathik Retail was merged with the group's power utility subsidiary CESC . An uncommon combination some would say, but Goenka is convinced.
Harsh Goenka, Chairman, RPG, said, "The power business is an annuity business where you get a fixed return, here it's a growing business. Retail looks good in the long-term. The second reason is that retail needs cash and power surpluses can be used here."
Those surpluses along with the IPO proceeds will be used to rent close to 25-lakh sq ft of retail space across the country. Also in store is a revamp for the group's existing retail outlets.
Spencers, one of the early birds in the retail space, has spruced up its image while it continues to offer lower prices. That's because the Indian consumer has been quick to embrace modern retail formats and he doesn't hesitate to enter an aspirational store.
