Aditya Birla Retail (ABR) will invest about Rs 1,500 crore in the next five years as it looks to expand its hypermarket and supermarket stores.
The company that runs hypermarkets under the 'More Megastore' brand is looking to open 12 stores each year, while adding around 150 outlets every year to its 'More' chain of supermarkets.
"We will open 12-13 hypermarkets and around 150 supermarkets every year for the next five years. For the current fiscal, we have earmarked an investment Rs 300 crore. There will be similar kind of investment each year for the for the next five years," ABR Chief Executive Officer Thomas Varghese said.
Speaking to reporters on the sidelines of an event organised by the Nielsen Company here, he said the average store size of the 'More Megastore' hypermarket will be around 60,000-70,000 sq ft.
Varghese said currently the company has 12 hypermarkets and 590 supermarkets.
Commenting on challenges faced by the organised retail sector, he said: "Real estate is a very big problem and it will always be for retailers but we are finding our own unique ways to deal with it."
For instance, at locations where the company finds it difficult to get into malls, it is either building its own sites or is tying up with developers, he added.
Asked if the high inflation has had any impact on sales, Varghese said: "There has been no decline in demand for basic necessity items such as food and grocery. Discretionary categories such as apparels and consumer durables are getting impacted.
"He, however, said on the premium product site there is an increase in demand due to rising aspirations of consumers and increase in their disposable income.
