Mumbai: RPG group company Spencer’s Retail plans to scale up its hypermarts chain to 400 and is targeting a turnover of Rs1,250 crore by March-end.
The company also said that it would continue to pursue its existing expansion plans and that the global economic meltdown would not impact it significantly.
“We are on track to have 400 hypermarts and achieve a turnover of Rs1,250 crore by end-march,” a company spokesperson said.
In FY’08, Spencer’s clocked a turnover of Rs820 crore.
“We are focusing on setting up more hypermarts across the country,” he said.
Spencer’s Retail at present has 32 large-format stores in 66 cities pan-India, spread over 1.5 million square feet.
The retail chain has earmarked a Rs1,500 crore investment for the expansion over a two-year period up to March 2009.
The spokesperson said that the upmarket stores such as Spencer’s would not be affected due to the present global scenario.
“Upmarket stores such as Spencer’s, which are not price-driven as much as others, will not be impacted by inflation and the global meltdown,” he said.
“The ones most likely to be affected are retail chains such as discount stores, catering to the low-income group,” he said.
Consumer spending is likely to shift from luxury goods to essentials with a slowdown in the economic cycle impacting demand negatively.
In October, at the peak of the festival period, “We had the best-ever month in terms of sales, it was the best Diwali. Sales stood at Rs110 crore,” the spokesperson said adding: “We will continue with our promotions and brand launches.”
Admitting to a decline in footfalls post the Mumbai terror strikes, he said: “It would be a while before things turn around.”
Spencer’s was mulling upgrading its insurance cover in view of the terror strikes. “We have been thinking of reviewing and upgrading our insurance cover,” he said.