Spencerís Retail is looking at an aggressive growth strategy with plans to set up 80 hyper stores in the next 48 months. As of now, the company has 132 stores, including 26 hyper stores, 14 super market and 92 convenience stores. The new stores would predominantly be located in tier-I and tier-II cities in the North (Uttar Pradesh & the Delhi-National Capital Region), the East (West Bengal and Chhattisgarh) and the South (Andhra Pradesh, Tamil Nadu). The plan is to open 12 stores this year, 15 in the next year and the balance in the following 2 years. The company has already signed property agreements for 68 stores. The investment would primarily be funded through internal accruals.
The company expects by the end of this financial year its turnover would stand at Rs 1,800 crore. Hyper stores, which contributed 58 % to the turnover in 2012-13, are expected to contribute 70 % this financial year and 85 % in 2014-15. Since the company faced hurdles, in terms of cost structure in its convenience store model, it has decided to go slow on expanding the format. In the last three years, the company shut 64 such stores.
Separately the company is working on increasing the share of unique commodities in the food and beverage segment from about 5 % to 30 %. These products might be company-made, produced along with another manufacturer, or sourced from other companies. Spencerís is also set to introduce its own wine, bottled in Argentina.