Max Hypermarkets, the food retailing chain of the Dubai-based Landmark Group is investing Rs 550 crore for its store expansion business across 30 cities in India.
Its food retail chain under the brand name of SPAR hypermarket has opened its eighth store in Pune. The group has a licence agreement with SPAR International to open SPAR stores in India.
The other seven stores are located in Bangalore, Hyderabad, Mangalore and Delhi. The company has invested Rs 9 crore for the Pune store. It occupies a retail space of approximately 50,000 sq.ft. The global food retailing major, with over 12,680 stores across 33 countries, opened its first store in India in 2004 in Bangalore.
Also, SPAR is opening stores in Indore, Coimbatore, Chandigarh, Vijaywada and Delhi. Spar will invest a total of Rs 550 crore for its expansion plans, of which, about Rs 250 crore will be equity and the rest will be obtained through debt. Speaking on the occasion, Viney Singh, Managing Director, Max Hypermarket India Pvt. Ltd, said "We are looking at opening 30 hypermarkets across India and clocking revenues of Rs 1,750 crore by 2013 with an investment of Rs 550 crore across 15 cities. We have invested close to Rs 9 crore in Pune store. We expect to close this fiscal with an annual revenue of Rs 300 crore. At SPAR we get the best international practices and adapt them to best suit the needs of the local shopper. Also because of our sharp pricing, promotions, loyalty programmes, a large fresh produce section and a customer-centric service, our customers look forward to shopping with us every week."
The Spar food private labels currently account for 16 per cent of the total food sales.
This is likely to grow to 25 per cent by March 2013.