IndiaRetailBiz

Consumer Durables market in India is belived to be around Rs. 30, 000 crore per annum. The share of organised multi-brand retail in this is considered to be less than 3%. While, Tatas, Ambanis, Biyanis and Dhoots are rolling out retail stores on pan-India basis, a few regional players like Vivek’s in the South and Vijay Sales in the West are also active in this space.

Like Tatas (Croma), Ambanis (Reliance ‘Digital’), Biyanis (e-Zones), and Dhoots (Next), RPG owned Spencer’s is also going ahead with the rollout of an independent multi-brand chain for electronic products.

Spencer’s first retail outlet to be called “Spencer’s Electronics” is likely to go on stream on 5th November, 2007, in Hyderabad. According to an HBL report, the retailer would initially set up five such stores in the South.

Each of these stores stocking electronic goods of various brands will occupy minimum floor space of 4,000 sq.ft. Croma and Reliance ‘Digital’ in comparison have much larger stores admeasuring over 10,000 sq. ft. each.

“RPG Cellucom”, the group’s mobile format, which has already set up 100 outlets across the country in collaboration with Dubai-based mobility enabler Cellucom, will also atl east double the number of such stores by March, 2008.

The group is also expanding its books, music, and leisure format ‘Books and Beyond’ to outside Delhi. Apart from selling books, the store also offers stationery, music and movie CDs, cassettes and DVDs.

As far as food and grocery format “Spencer’s Daily” is concerned, the group is well on track to set up 600 stores by March, 2008. Currently, there are 320 stores (including 14 Hypermarkets). At the monthly strike rate of 50 to 55 store, Spencer’s should have no difficulty in setting up additional 280 stores before the target date of 31st March, 2008. RPG has planned an outlay of Rs. 500 crore to fulfill its retail ambitions this year. The group has already tied up required real estate for the next 10 months, including a 65,000 sq. ft. premises for Hypermarket in Kolkata.