Spencer's Retail Strategy - 2008

Spencer’s Retail is looking at international tie-ups in a big way. Having entered into an exclusive arrangement with Woolworths Plc UK for Chad Valley Toys, it will now bring in three international brands in the calendar year.
Industry sources said that talks are on for a joint venture with a US-based bakery chain, and tie-ups with two international apparel brands are also in the offing.
There could be equity joint ventures apart from exclusive tie-ups.
Spencer’s Retail, a part of the Rs 13,500 crore RPG Enterprises, is targeting a turnover of around Rs 1,800-2,000 crore in the current fiscal. The retail chain plans to double its area from 11 lakh sq ft to 22 lakh sq ft by March 2009.
With 17 hypermarts at present, it proposes to add 14 more in the current fiscal across the country.
Spencer's plan to add 300 stores this year to 400 that they have at present. They have already invested Rs 1,000 crore and will make an investment of Rs 1,200 crore over the next 18 months, most of which will be funded from internal accruals.
The organised toy market is very small in India and they expect a growth of 50-60% on a year-on-year basis. At the Chad Valley corner, kids have a choice of more than 500 items, with plans for introduction of new toys frequently.

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