Spencerís is planning to aggressively scale up its hypermarket presence from 28 stores to 100 by 2017. Plans are also on to increase the hypermarket store size from 23,000 sq ft to 29,000 sq. ft. The retailer says it has lined up an investment of Rs 600 crore from its parent group for the large-format expansion.
In terms of geographies, the company is eyeing Andhra Pradesh, Uttar Pradesh, National Capital Region, West Bengal, Chhattisgarh, Jharkhand, Tamil Nadu and Karnataka. It is, however, holding back by three years its expansion in western India. Right now, the retailer has a few stores in Mumbai and Baroda, which will continue to operate. The company estimates the cost of setting up each large-format store to be in the range of Rs 6 crore to Rs 10 crore.
At the same time, Spencerís is also looking to halt its supermarket expansion. The company shut down at least 30 of its small stores in 2012. The 97 stores remaining are profitable and will continue to run.
At the end of financial year 2012, Spencerís revenues were Rs 1,386 crore while losses were to the tune of Rs 209 crore. The retailerís total debt stood at Rs 436 crore. The company is looking at turning Ebitda positive next quarter.